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Weapons manufacturer loses $88.4mln action against government arms corporation

11:45 05/03/2012

MOSCOW, March 5 - RAPSI. The Moscow Commercial Court rejected on Monday the artillery weapons manufacturer's lawsuit against the Russian Defense Export (Rosoboronexport) state-run arms export and import corporation to recover $88.4 million, the Russian Legal Information Agency (RAPSI/rapsinews.ru) reports from the courtroom.

Ametech, the plaintiff, stated after the hearing its intent to challenge the judgment.

Ametech Chief Engineer Vladimir Vishnevsky told RAPSI that the company received a foreign customers order for arms development in 2001, but failed to fulfill it on time due to insufficient customer financing. Rosoboronexport's subsequent financing did not help to fulfill the order.

Ametech seeks from the arms dealer 1.63 billion rubles ($55.63 million) in lost profit, as the order would have brought Ametech $50 million.

It also demands 120 million rubles ($4.1 million) in penalties for "unproductive financing," which resulted in the order fulfillment time being increased by six years.
Vishnevsky added that Ametech did not pay wages for two years, which is an insult for which Ametech seeks partial compensation amounting to 16 million rubles ($546,150). He also noted that its activities have not been financed since May 2009.

The defendant refuses to meet the claims, stating that the plaintiff fails to understand the essence of their contractual relations. Ametech seeks funds from Rosoboronexport, although it only acted as an intermediary between the customer and the contractor, which terminated the contract.

Additionally, the plaintiff did not provide evidence confirming that the claims were settled and the statute of limitations has expired. According to the defendant, the statute of limitations expired in 2007, as the Ametech CEO said the company's rights had been violated as of 2004. The plaintiff claimed the violations began two years ago.

Ametech is a research and engineering complex and a laser-guided artillery arms manufacturer.

Rosoboronexport is a global arms market leader. It is the only Russian government exporter and importer of defense and dual purpose products, techniques and services, occupying 80 percent of the country's military equipment exports.

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Weapons manufacturer loses $88.4mln action against government arms corporation

11:45 05/03/2012 The Moscow Commercial Court rejected on Monday the artillery weapons manufacturer's lawsuit against the Russian Defense Export (Rosoboronexport) state-run arms export and import corporation to recover $88.4 million.
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