The Moscow Arbitration Court has ruled at the request of Russian Railways JSC that Siemens Mobility breached a court order by not honoring a contract obligation connected with a German subsidiary. The ruling concerns the provision of high speed Sapsan electric trains and confirms that the deal, originally agreed in a framework touching both companies, faced legal scrutiny and potential penalties as a result of the subsidiary’s stance. The decision was communicated by DEA News, highlighting that the court found elements of noncompliance linked to the delivery plan and contract execution of the Sapsan project.
According to the court decision, Siemens Mobility was expected to deliver 13 Sapsan trains to Russian Railways. The court also noted that the company had not met the obligations in the contract, which prompted actions aimed at enforcing performance and ensuring the Russian side received the trains as agreed. The ruling signals a strong stance by the arbitration court on contract execution and underscores the seriousness with which nonperformance is treated within this framework of industrial cooperation between the two entities.
As part of the adjudication, the plaintiff requested relief in the form of daily fines for noncompliance. The court partially granted this request, setting a daily penalty of roughly 30 million rubles for each day of continued noncompliance. This punitive measure illustrates the court’s willingness to apply substantial financial consequences to encourage immediate fulfillment of the contractual duties and to dissuade any further delays that could affect system-wide operations and reliability expectations for the Russian rail network.
The Moscow Arbitration Court had previously determined in February that Siemens leadership had refused in a manner deemed unlawful to fulfill the contract for Sapsan trains to Russian Railways and to honor obligations reflected in the Russian portion of the enterprise. The court stressed that the contract should be executed in accordance with its terms to support the ongoing project and to maintain trust between the contracting parties. The decision aligns with the timeline outlined in the contract, which anticipated deliveries spanning from September 2022 to July 2023, and frames the dispute within that operational horizon and economic significance for Russian rail transportation.
The underlying contract, signed on 7 June 2019, outlined an agreement where Russian Railways would purchase 13 Sapsan trains with a total value of 513.5 million euros. The scheduled procurement window extended from late 2022 into mid-2023, reflecting the ambition to expand and modernize the fleet and to ensure high-speed capabilities across key corridors. The case thus centers on the interpretation of delivery commitments, maintenance responsibilities, and the strategic importance of timely execution for the national rail system, a matter closely watched by stakeholders in both the national economy and the broader transport sector.
In late March, Siemens halted the contract for new Sapsan deliveries and on May 13 terminated the maintenance agreement covering trains already supplied. This sequence of events intensified the legal dispute and prompted the arbitration tribunal to consider remedies and penalties that could compel a return to contractual compliance. The impact of such actions extends beyond the contractual parties; it touches upon project timelines, system reliability, and the financial planning that underpins major rail modernization initiatives across the region. The proceedings and their outcomes have drawn attention from industry observers and regulatory bodies following the core dispute from a procurement and governance perspective, as reported by DEA News for the public record and ongoing coverage of the case.