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2022 June 8   16:17

Baltiysky Zavod files lawsuit against Wartsila for EUR 5.1 million

Baltiysky Zavod shipyard. Photo by IAA PortNews

The shipyard claims compensation of expenses caused by Wartsila’s refusal to supply equipment for icebreakers of Project 22220

Baltiysky Zavod JSC has filed a lawsuit in the Arbitration Court of Saint-Petersburg and the Leningrad Region against Wartsila Solutions, according to the commercial case file database. The claim amount is EUR 5.1 million, Baltiysky Zavod told IAA PortNews. According to information obtained by the Agency, the reason for the suit is the refusal of Wartsila to supply equipment for icebreakers of Project 22220, Yakitia and Chukotka, the delivery of which is scheduled for 2024 and 2026 respectively.

Under the contract with FSUE Atomflot, Baltiysky Zavod shipyard is currently building three icebreakers of Project 22220: Ural, Yakutia and Chukotka. The shipyard’s press center says that Baltiysky Zavod is looking for alternative suppliers of equipment.

No response has been obtained from Wartsila Vostok LLC to IAA PortNews’ query regarding the impact of the action proceeding within Russian jurisdiction or reasons behind termination of the agreement on supply of equipment. 

Established in 1856, Baltiysky Zavod shipyard specializes in the construction of Rank 1 surface crafts, ice class vessels with nuclear and diesel-electric propulsion as well as nuclear floating energy units. Throughout its history, Baltiysky Zavod has built over 600 ships and vessels.

Wartsila used to supply equipment for many shipyards in Russia including equipment for diesel icebreaker under the order of FSUE Rosmorport.

Headquartered in Helsinki, Finland, Wartsila is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. In 2021, Wärtsilä’s net sales totalled EUR 4.8 billion. The company's team numbers 18,000 professionals in 200 locations in more than 70 countries.  Wärtsilä is listed on Nasdaq Helsinki.

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