A photo of a liquefied natural gas built by Samsung Heavy Industries Co. provided by the company (Yonhap)
SEOUL, June 13 (Korea Bizwire) – South Korean shipyard Samsung Heavy Industries Co. said Thursday a Russian shipyard unilaterally canceled supply contracts worth billions of dollars and it plans to take the case to an international arbitration center.
Russia’s Zvezda Shipbuilding Complex recently canceled a combined US$4.2 billion worth of contracts signed in 2019 and 2020 with Samsung Heavy on designing 15 liquefied natural gas (LNG) carriers and seven shuttle tanks, according to the Korean company.
The Russian shipyard asked Samsung Heavy to return the $800 million it already paid in advance and a delay charge.
It also revoked its order for 17 remaining vessels to be designed, excluding the five LNG carriers Samsung Heavy already delivered, according to officials.
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Samsung Heavy to ask int’l court for arbitration of Russia’s Zvezda for canceling deals
송고시간 2024-06-13 16:53
Samsung Heavy-Russia
SEOUL, June 13 (Yonhap) — South Korean shipyard Samsung Heavy Industries Co. said Thursday a Russian shipyard unilaterally canceled supply contracts worth billions of dollars and it plans to take the case to an international arbitration center.
Russia’s Zvezda Shipbuilding Complex recently canceled a combined US$4.2 billion worth of contracts signed in 2019 and 2020 with Samsung Heavy on designing 15 liquefied natural gas (LNG) carriers and seven shuttle tanks, according to the Korean company.
The Russian shipyard asked Samsung Heavy to return the $800 million it already paid in advance and a delay charge.
It also revoked its order for 17 remaining vessels to be designed, excluding the five LNG carriers Samsung Heavy already delivered, according to officials.
Under the deal, the Korean company had dispatched its workforce to Zvezda to design a total of 22 vessels, but the workers pulled out of the shipyard after Russia invaded Ukraine in early 2022.
Amid the ongoing war, the United States issued a series of sanctions against Russia to pressure Moscow to end its conflict with Ukraine, making it impossible for Zvezda to operate.
Samsung Heavy said it will file a suit with the Singapore International Arbitration Center against the Russian shipyard for the contract revocation, saying Zvezda’s move is unfair.
(Yonhap)
