MOSCOW, March 12 - RAPSI. The Moscow District Federal Commercial Court has held in favor of the dismissal of the Defense Ministry's lawsuit to recover $8.87 million from the Energia S.P. Korolev Rocket & Space Corporation.

The Defense Ministry's appeal was dismissed.

The 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 work would be completed in two stages.

Energia was required to complete the first stage by June 30, 2008. However, supplementary agreements to the contract were later concluded to extend the work terms.

The ministry believes the additional agreements are invalid as the parties had no right to enter into the agreements, and Energia should have completed the first stage of the work as stated in the contract as opposed to in 2009.

The defendants representatives did not admit the claim, having stated that the works were not accomplished on time due to the associate contractors, who were recruited and then accepted by the ministry. The deadline was extended because, among other things, the ministry changed the associate contractors. Additionally, the defendant delayed the acceptance of the works performed by Energia.

While dismissing the lawsuit, the court said it finds Energia's arguments well-grounded, although the additional agreement delaying the completion was invalid as a government contract is not subject to amendment in terms of deadlines.

Energia is a space and rocket industry leader. It develops missile systems, combat and geophysical missiles, boosters, spaceships and space stations. Energia participated in building the International Space Station and is working on the Global Navigation Satellite System program.