Sevmash to appeal against court decision in Odfjell case
The Sevmash shipyard has appealed a court decision from Arkhangelsk that rules in favour of the Norwegian shipping Company Odfjell regarding a $44 million dispute after Sevmash failed to deliver 12 chemical tankers ordered by Odfjell.
A court ruling from Friday December 10th approved Odfjell’s application concerning the recognition and enforcement of the arbitral award filed against Sevmash. The shipyard has now appealed this decision, Anastasiya Nikitinskaya from Sevmash told BaltInfo.
Back in 2004 Odfjell placed an order at Sevmash, Russia’s largest shipyard, for up to 12 chemical tankers, each of about 45,000 tons capacity. The newbuilding contracts included an arbitration clause under Swedish law.
The contract on 12 tankers was described as historical in Norwegian-Russian industrial cooperation when it was concluded in 2004. The agreement worth $450 million was the biggest order ever made by a Norwegian company in Russia. However, the relationship between the parts soon started to show signs of trouble. Excessive and continuing delays of construction forced Odfjell in 2008 to cancel these contracts.
Odfjell claimed damages from Sevmash, and the Swedish arbitration tribunal unanimously, on 30 December 2009, awarded Odfjell damages of USD 43 million plus reimbursement of legal costs plus 8.5% p.a. interest for any delay in settling the award.
