The sanctions imposed by the United States, South Korea, Japan, and other countries have affected the supply of a machine to the Federal State Unitary Enterprise Production Association Mayak (FSUE Mayak PA), a leading enterprise in Russia’s nuclear weapons complex.
In 2023, Mayak entered into a contract with Promtech LLC for the supply of a CNC band saw machine. According to the contract, the machine was to be delivered by June 5, 2024. Mayak made an advance payment of 2.68 million rubles, but the machine was not delivered on time. As a result, the company filed a lawsuit in an arbitration court.
In the court, the supplier of the machine claimed that they had entered into a contract with the manufacturer of the product, TEHMASH JSC, but “during the production process, the manufacturer faced difficulties in procuring foreign-made components that are not produced in the Russian Federation. Following the imposition of significant sanctions and their subsequent increase by European countries, the United States, South Korea, Japan, Taiwan, and other countries after February 24, 2022, foreign manufacturers of components, with whom both the equipment manufacturer and the defendant (as the supplier) had long-term contracts for the purchase of equipment and components, have left the Russian market.”
Promtech LLC also stated in court that on November 6, 2024, they had informed Mayak that the equipment had been manufactured and transferred to a transport company for delivery to a warehouse. However, this did not help the supplier.
The court sided with Mayak and decided to recover the advance payment of 2.68 million rubles from Promtech LLC.
FSUE Mayak PA, the first industrial facility in the Russian nuclear industry, is responsible for fulfilling the state defense order for the production of nuclear weapons components.
