The largest Russian pipe manufacturer, PJSC Pipe Metallurgical Company (TMK), has officially announced its intention to file lawsuits declaring the Russian companies PSI LLC, Orekhsoft LLC and Progress LLC bankrupt.
Such statements arose after the Ninth Appeal Court of Arbitration of Moscow made a ruling on 27 January 2025, having considered appeals from Orekhsoft, PSI, and PSI Software SE* (Germany) against the decision of the Arbitration Court in Moscow regarding case No. A40-195134 / 23. According to this resolution, 401 million rubles should be recovered from PSI Software, Progress, PSI and Orekhsoft in favor of TMK. It is likely that these companies cannot pay this amount to TMK, so TMK plans to file lawsuits declaring them bankrupt.
The dispute between the companies has been ongoing for several years. In 2019, TMK signed a software development and installation agreement with the German company PSI Metals GmbH, which was later reorganized into PSI Software SE. Russian companies affiliated with PSI Software participated in the execution of this agreement.
In 2022, PSI notified TMK about the termination of their contract due to sanctions imposed by the European Union on Russian metallurgical companies. After that, TMK filed a lawsuit demanding compensation for expenses incurred, including salaries of employees involved in software implementation.
There is a passage in the ruling of the Ninth Arbitration Court of Appeal stating that defendants seemed to have requested recognition that EU sanctions were grounds for reneging on obligations, but the court rejected such proposals.
*The PSI Group develops software products for optimizing the flow of energy and materials for utilities and industry. The PSI Group employs about 2,300 persons in 13 German and 17 international locations in Europe, Asia and North America. In the financial year 2023 the Group achieved revenues of 269.9 million Euro. PSI Software SE is listed in the Prime Standard of the German stock exchange.
