Defense Ministry's appeal in $8.5 mln suit against aerospace company dismissed
MOSCOW, November 30 - RAPSI, Natalia Belova. A commercial court of appeals upheld the decision to dismiss the Defense Ministry's lawsuit to recover $8.35 million from the S.P. Korolev Rocket and Space Corporation Energia (Energia), the court spokesperson told RAPSI on Wednesday.
The Defense Ministry based its claim on the rocket company's failure to complete its contracted space system engineering work on time, as it was obligated to do under a July 31, 2007 contract.
The contract stipulated that the works would be completed in two stages.
Energia was required to complete the first stage by June 30, 2008. However, additional agreements to the contract were later concluded to extend the work terms.
The ministry believes that the additional agreements are invalid, and Energia should have completed the first stage of the work as stated in the contract as opposed to in 2009.
According to its website, Energia is Russia’s leading rocket-space enterprise, as well as the country’s leader in manned space systems. The company develops missile systems, combat and geophysical missiles, spaceships and space stations. Energia participated in building the International Space Station and is working on the Global Navigation Satellite System program. The company has been operating within the field since 1946 and has “initiated practically all lines of activity related to national rocket and space technology.”