The manufacturer of microcircuits No. 1 had questions to the Russian Ministry of Defense after the sanctions were imposed.
Mikron JSC, the largest Russian manufacturer of microelectronic products, was forced to file a lawsuit against the Russian Ministry of Defense after the imposition of EU and US sanctions.
Mikron is a supplier to the Ministry of Defense. Under the contract, the company produces personal electronic card forms (PEC-M). PEC-M began to be issued after the introduction of military reform in 2015. They can be used as a military registration document. The card contains information about the military: full name, education, military specialty, medical examination results. The PEC is an analog of a military ID, but it contains more information.
In 2022, the company and the Ministry of Defense signed a contract for the supply of maps. The parties reached an agreement on the costs for 2022, but did not agree on the costs for 2023.
As it turned out, the dispute is based on sanctions.
The manufacturer’s arguments were as follows:
“The suppliers of the products with whom the plaintiff has been cooperating for many years, referring to documents adopted by the European Union and the sanctions of the US Department of Commerce, refused to supply the ordered and paid products.In the current situation, Mikron JSC was forced to look for alternative suppliers, building new logistics chains. More than 100 (hundred) names of materials and components are used in the production of the PEC-M product. The plaintiff was forced to actually rebuild the manufacturing process of PEC-M due to the inability to supply original materials and components from companies that refused to cooperate. In addition, as part of the process adjustment for new chemical materials, the yield percentage spread, as mentioned above, ranged from 16.94% to 89.08%.”
As a result of changes in the technological process, the percentage of yield of suitable products has changed. The complexity of the technological process has also changed. Based on this, the manufacturer requested to change the contract price from an estimated to a fixed one, but the court rejected the company’s claim based, among other things, on the expertise data.
