The sanctions have intervened in a dispute between a leading Russian manufacturer of port cranes and the Swiss company Liebherr.
The Russian LLC Liebherr-Russland, a subsidiary of the Swiss manufacturer of machinery and components Liebherr-International AG, has reached a decision in the arbitration court of St. Petersburg and the Leningrad region, according to which CJSC SMM must pay it arrears under the supply agreement in the amount of 780,292 euros, a penalty in the amount of 78,029 euros, and in total 858,321 euros.
CJSC SMM is a leading Russian manufacturer of heavy lifting equipment for ports and shipyards.
According to court documents, in 2020, the companies signed a contract for the supply of equipment necessary for the production of gantry cranes. Such cranes, depending on the type, are used in ports for transshipment of goods or for operations during the construction of ships.
Liebherr-Russland supplied the goods to SMM. The total cost of the delivered goods is 1,556,740 euros. However, SMM paid only part of the goods, after the debt arose, Liebherr-Rusland went to court.
SMM, in turn, also filed a counterclaim with the court, demanding that Liebherr-Rusland pick up the delivered goods.
SMM justified its position by stating that the delivered product was unique, and that upon a warranty event, or with necessary maintenance, Liebherr would not be able to fulfil its obligations to SMM. A full-fledged repair required delivery from Germany, which was now impossible due to sanctions imposed by the EU on Russia. These sanctions prohibit companies located in the EU, including Liebherr, from selling, supplying or exporting goods that could contribute to strengthening Russian industry.
However, the court decided that there was no evidence to support the claim that it was impossible to ensure the fulfillment of warranty and service obligations due to restrictive measures taken by the defendant. Therefore, the court ruled in favor of Liebherr-Russland.
