ST.-PETERSBURG, August 27 - RAPSI. The Thirteenth Commercial Appeals Court has upheld a lower court decision satisfying Swedish shipyard company Stena RoRo's complaint to recover $37.7 million from the Baltiysky Zavod shipyard after its primary creditors receive their debt payments, according to the Supreme Commercial Court.

Stena RoRo is seeking 1.2 billion rubles ($37.7 million) in debt from the shipyard, and challenged the St. Petersburg and Leningrad Regional Commercial Court's ruling dated May 22.

Last September, the Supreme Commercial Court upheld a Stockholm arbitration institute's decision to award Stena RoRo 20 million Euros in its lawsuit against Baltiysky Zavod.

In 2005, the parties signed contracts according to which the shipyard agreed to build two vessels worth 58.8 million Euros each for the company.

An option contract was also concluded. This agreement envisaged the construction of two similar vessels worth 59.4 million Euros each.

Neither the contracts, nor the option contract were implemented.

The Swedish company later submitted a lawsuit to the Stockholm Arbitration Institute, seeking to recover the losses that it had suffered due to the non-execution of the contracts.

The Arbitration Institute satisfied the company's claim, but the shipyard refused to abide by the decision.

Stena RoRo then lodged a claim with the St. Petersburg Commercial Court, requesting its recognition of the Swedish Arbitration Institute's award.

Baltiysky Zavod is part of the United Industrial Corporation owned by Russian Senator Sergey Pugachyov. The factory builds icebreakers and military vessels. It manufactures a range of engineering products and energy equipment and supplies nonferrous and core-mold castings.