Excessive and continuing delays during construction forced Odfjell in 2008 to cancel these contracts. Odfjell claimed for damages and was awarded USD 43 million plus interest by the Swedish Arbitration Tribunal on 30 December 2009.
The Russian shipyard failed to honour the international award, forcing Odfjell to seek enforcement within Russia. A ruling was made by the State Commercial Court in Arkhangelsk on 10 December 2010, in Odfjell’s favour. However, Sevmash appealed the decision.
The Cassation Court in St. Petersburg today Thursday 10 March 2011 decided in favour of Odfjell, and confirmed the decision of the State Commercial Court allowing enforcement of the arbitral award, which now with interest is about USD 50 million. The decision was handed down orally in the court today, and Odfjell will receive the full written decision within a week from today.
PDF 
If you are interested in joining our mailing list, please submit your email below. 
Follow Us!