The Court Rendered A Decision in The Dispute Between Baker Hughes and Yamal LNG For $50 Million
Nefteservis tried to get the interim measures canceled.
The Arbitration Court of the West Siberian District rejected the complaint of Baker Hughes Rus Infa LLC. The company was unable to challenge the imposition of interim measures: arrest of accounts in the amount of $50.7 million (at the Central Bank exchange rate on the date of arrest) and 47.3 million rubles.
The conflict between the parties occurred due to failure to fulfill obligations under the supply agreement. Representatives of Yamal LNG indicated that the Russian structure of Baker Hughes should return the money for the parts supplied to it for repairs, but not returned. According to the plaintiff, the defendant also undertook to carry out maintenance. The funds were transferred to him, but the company did not carry out any work. The plaintiff also demands the return of the advance payment for parts purchased but not supplied. The domestic company wants to receive the largest amount, $31.5 million, as compensation for termination of the contract.
Let us clarify that Yamal LNG plans to begin proceedings in international commercial arbitration. Before initiating the process, the company insisted on the introduction of preliminary interim measures.
During the process, the defendant asked to freeze accounts in the amount of 378.5 million rubles, and satisfy the rest of the claims from other assets. Baker Hughes Rus Infa stated that in the event of a freeze, they would not have money to pay contractors, pay salaries and taxes. In addition, the company indicated that the debt cannot exceed $9.6 million. The courts considered that partial lifting of the arrest to fulfill obligations to other enterprises would lead to “unreasonably preferential satisfaction of creditors’ claims,” according to the proceedings.
The plaintiff also reported that Baker Hughes Rus Infa is reducing production in Russia and curtailing projects in the country. Yamal LNG indicated that the defendant does not intend to fulfill its obligations under the pretext of sanctions.
The Yamal-Nenets Autonomous District Arbitration has frozen the accounts of Baker Hughes Rus Infa. The next two authorities left the decision unchanged.
Yamal LNG is the operator of a natural gas liquefaction plant in the Yamal-Nenets Autonomous Okrug.
