Arkhangelsk court ruled in favour of Odfjell
A court decision in Arkhangelsk rules in favour of the Norwegian shipping Company Odfjell regarding the dispute with Sevmash shipyard.
The court ruling from Friday December 10th approved Odfjell’s application concerning the recognition and enforcement of the arbitral award filed against Sevmash.
Read also: Odfjell gets 43 million USD compensation from Sevmash
- We have so far only received the decision. Further details with full reasoning are expected within a few days. The decision is a huge step forward for Odfjell in terms of being able to collect the outstanding as awarded by the Arbitration Tribunal in Sweden. The yard has a 30 day appeal right, says Odfjell CEO Jan Hammer in a press-release.
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 was then the biggest industrial contract ever signed by a Norwegian company in Russia.
Excessive and continuing delays of construction forced Odfjell in 2008 to cancel these contracts.
Read also: Sevmash refuses to pay Norwegian debts
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.
