A Russian rocket engine manufacturer has been left without money due to Canadian sanctions.
The sanctions against Russia have left PJSC UEC-Ufa Engine Manufacturing Association (UEC-UMPO), a Russian manufacturer of engines for airplanes, helicopters and missiles, without money.
In 2009, UEC-UMPO began cooperation with the Canadian aircraft engine manufacturer Pratt & Whitney Canada International lnc. The Russian company supplied engine components to Canada.
According to one of the agreements concluded in 2019, UEC-UMPO supplied Pratt & Whitney with components worth $692,244 in 2021 and 2022. However, the UEC-UMPO money was not received due to the sanctions that came into force in 2022.
The agreement between the companies stipulated that disputes between them should be considered in an arbitration court in Quebec, Canada. However, UEC-UMPO appealed to the Arbitration Court of Russia.
The materials of the Russian court state that “given Canada’s accession to the sanctions imposed by the European Union (including against the plaintiff), objective and impartial judicial protection of the rights and interests of a Russian legal entity can currently be carried out only within the territory and jurisdiction of the Russian Federation.”
As a result, the court sided with UEC-UMPO and decided to recover $692,244 from Pratt & Whitney. It is likely that due to the terms of the agreement, the Russian court’s decision will not be recognized and enforced in Canada.
