The Russia’s state corporation VEB.RF recovered 123.9 million rubles (about 1.2 million euros) from American Goldman Sachs International.
The dispute between the two companies was examined by Moscow Arbitration Court and the court published the full text of its decision on May 27.
According to the court, in 2007, the companies entered into an agreement according to which they were supposed to make a series of payments in US dollars and euros to each other.
However, due to sanctions imposed by the United States and European Union on VEB.RF in 2022, VEB.RF was unable to receive 101 million rubles owed to it by Goldman Sachs. The agreement between the parties provided for disputes to be resolved through London International Arbitration, but VEB.RF argued that the sanctions prevented this and filed a claim with the Russian court instead.
The Moscow Arbitration Court found that “the existence of sanctions imposed by the EU, USA and UK directly against the plaintiff significantly affects his rights, putting him in an intentionally unequal position compared to other persons located in foreign jurisdictions, including the defendant. This is especially true in regard to the application and effect of the sanctions on the parties’ ability to perform their contractual obligations.”
The court ruled in favor of Goldman Sachs International and ordered it to pay VEB.RF a total of 123.9 million rubles in debt and interest for using funds.
VEB.RF is a Russia’s state corporation established by Russian federal law. VEB.RF is also a government agent for Russia’s foreign debt, both of the Russian Government and of the former Soviet Union, and the management of certain pension funds through State Trust Management Company, a separate division of VEB.RF.
