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Court upholds RZD’s right to €65,000 daily after Siemens breaching Sapsan contract

26 May 2023
Reading time ~ 1 min
Sapsan EMU
Sapsan EMU. Source: Iridium/railgallery
Stolchnev Alexey, Russian Projects Editor, ROLLINGSTOCK Agency
Reading time ~ 1 min
Savenkova Ekaterina, Editorial Contributor to International Projects of ROLLINGSTOCK Agency

Russia: Earlier, Russian Railways asked the Commercial Court of Moscow to impose a RUB 29.6 mln (€330,000) penalty. The amount is a sum of RUB 6 mln (65,000) for breaching the contract and the remaining as reparation for loss due to Siemens’ refusal to supply the rolling stock.

In the courtroom, a representative of Siemens stated that potential criminal liability did not allow the company to comply with its obligations, according to RIA Novosti. He assessed the amount of penalty as excessive because, in Siemens’ view, it included losses. If imposed, in a year Russian Railways would receive an amount equal to its profits for 2021, said the representative of the manufacturer. He also asked the court to reject the claim as the contract was regulated by German law.

The court emphasised that the contract could not be terminated unilaterally because “sanctions by the US and EU are contrary to the fundamental principles [of the Russian legal system] and cannot be applied in Russia”. The court also stressed that the EU clarified the restrictive measures were not applicable to contracts already in force.