The sanctions have left the developer of Russian warships, the Central Marine Design Bureau Almaz, without an engine.
Russian companies continue to argue in arbitration courts, trying to get goods or money that have been stuck in the European Union due to sanctions.
MTD, a company from St. Petersburg, has filed an arbitration case in its city, demanding that the Swedish company Marine Jet Power AB pay 4,285,050 Swedish kronor, which was paid as an advance under a contract signed in July 2021.
According to the contract, Marine Jet Power AB was supposed to supply MTD with a complex of two MJP 550 waterjet engines. However, in August, Marine Jet Power AB announced that it could not deliver the engine because the Swedish government had denied an export permit for this product to avoid violating EU sanctions.
The Swedish government justified its decision by referring to Article 2a.1 of the Council Regulation 833/2014, which prohibits the sale, supply, movement, or export of goods and technologies that could contribute to Russia’s military-technical strengthening, directly or indirectly.
After the refusal, MTD was unable to recover the advance payment for the engines. Swedbank AB, which was servicing Marine Jet Power AB’s account, refused to make any payments to the Russian Federation, citing the following reason: “The Bank has assessed the risks associated with making payments to and from the Russian Federation as uncontrollable due to the sanctions imposed on the Russian Federation.”
After this, MTD filed an arbitration case, which resulted in the Swedish company Marine Jet Power AB being ordered to pay 4,285,050 Swedish kronor.
There was a third party involved in this dispute. According to the court, MTD was supposed to supply the engine to the Central Marine Design Bureau Almaz, which designs warships. More than forty countries around the world have boats and ships built according to the designs of this design bureau.
