News

Judgments in cases UKRENERGY TRADE SE vs. SFTC UKRINTERENERGO and KORLEA INVEST, a.s. vs. SFTC UKRINTERENERGO are delivered

Vienna International Arbitral Centre of the Austrian Federal Economic Chamber (VIAC) has adopted two decisions that are of great importance for SFTC UKRINTERENERGO

In January 2013, UKRENERGY TRADE SE and KORLEA INVEST, a.s. have filed claims against SFTC Ukrinterenergo regarding the breach of contract for electricity export in terms of failure to deliver electric power in the volumes stipulated in the contracts. The mentioned contracts for electricity export were signed in 2008.

The claimants demanded to recover damages from SFTC UKRINTERENERGO in connection with violation of contractual terms.

This September Vienna International Arbitral Centre of the Austrian Federal Economic Chamber (VIAC) has adopted the final decisions as follows:

  1. in case UKRENERGY TRADE SE vs. SFTC UKRINTERENERGO – to dismiss the Claimant’s claim regarding recovery of damages (loss of profit)/penalties in the amount of EUR 268,313,000 from SFTC UKRINTERENERGO due to the breach of contracts for electricity export, as well as all other claims.
  2. in case KORLEA INVEST vs. SFTC UKRINTERENERGO – to dismiss the Claimant’s claim regarding recovery of damages (loss of profit)/penalties in the amount of EUR 73, 880, 000 from SFTC UKRINTERENERGO due to the breach of contracts for electricity export, as well as all other claims.

Subject to the decisions of Vienna International Arbitral Centre of the Austrian Federal Economic Chamber, in the course of judicial proceedings UKRENERGY TRADE SE and KORLEA INVEST, a.s. failed to establish the fact of infliction of damages in the form of lost profit, as well as the existence of other elements of civil offense for holding SFTC UKRINTERENERGO civilly liable.