Russian company Power Machines, owned by businessman Alexei Mordashov, which has been under US sanctions since 2018, won the case against Vietnamese state company Vietnam Oil and Gas Group (PetroVietnam) at the Singapore International Arbitration Center (SIAC). This was reported by RBCciting the company and resources.
According to the publication, this is the first public victory for a sanctioned Russian company in international arbitration since at least 2022, when the West imposed harsh sanctions on the Russian Federation following the start of a special military operation (SVO) in Ukraine.
Power Machines company in 2019 filed Request for compensation to be lodged with the Singapore International Arbitration Center (SIAC)
Funds were invested in the construction project of the Long Phu 1 thermal power plant (TPP) in Vietnam, which was stopped due to the sanctions imposed by the USA on the Russian company. The case was sent to court after the Vietnamese side ignored the invitation of the Russian Ministry of Economic Development to negotiate at the government level.
According to an RBC source, the request was met for over $500 million, the actual cost of building the project by the date the contract was terminated. The Vietnamese side filed a counterclaim demanding compensation for approximately $3.5 billion in damages, but the court rejected the request.
A representative for Power Machines told the publication that arbitration ruled in favor of the company in November 2023. Power Machines said the company was pleased with SIAC’s decision, but the terms of the decision were confidential and could not be disclosed to any party at this stage.
Putin before named Sanctions against Russia are crazy and reckless.