Russia’s biggest shipbuilding company, Sevmash in Severodvinsk, still refuses to pay the Norwegian shipping company Odfjell a debt of USD 47 million after failing to meet contract conditions to build up to 12 ships.
Sevmash refuses to pay their debts despite a ruling from the arbitration court in Stockholm last year.
Signed back in 2004, the deal between Odfjell SE and Sevmash was recognized as the largest industrial deal ever between Russia and Norway.
Interviewed by phone from Bergen in Norway Dan Odfjell, says to BarentsObserver that the case might end up in court again.
- We trust the Norwegian authorities will prevail in having the Russian Government honour the award and act in accordance with international law. Otherwise, if really necessary, we shall have to seek enforcement through the courts of Russia, Dan Odfjell says.
Dan Odfjell is the ex-chairman of Odfjell SE, now member of the board and responsible for follow up the case with the Russian state owned shipyard Sevmash.
- I think the case will be solved in a proper way. I can’t understand for what reasons Sevmash don’t pay, Dan Odfjell says to BarentsObserver.
- Now, still we have not received payment from Moscow, in spite of reminders. This will likely oblige us soon to go to the Russian courts seeking enforcement, Odfjell says.
- Following a lengthy and costly Stockholm hearing process, that concluded more than a year ago, and given the above, and the fact that the Russians went through this entire arbitration without in the least indicating that they would not honour a negative verdict, we are now utterly surprised, Dan Odfjell says.
The Norwegian Foreign Minister Jonas Gahr Støre arrives in Arkhangelsk on Thursday for a two day visit. The controversy between the Norwegian shipping company and Sevmash is not on Støre’s agenda. But the case is well known for the Norwegian Government.
During the official visit to Norway in April this year by Russia’s President Medvedev, along with other high ranking officials such as Deputy Prime Minister Zubkov, the Norwegian Minister of Industry, Trond Giske, tabled the Sevmash matter with his counterparty Zubkov.
According to Dan Odfjell, the Norwegian side was then encouraged to consider this a case easy to resolve.
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