Court of Appeal confirms lower court’s decision on Pella shipyard’s claim of over RUB 2 bln from RF Defense Ministry

The dispute was caused by considerable changes introduced into the design documentation

The 9^th Arbitration Court of Appeal confirmed the lower court’s decision in the case of the recovery of more than RUB 2 billion from the Russian Ministry of Defense in favor of Leningrad Shipbuilding Plant “Pella”, OJSC. According to the resolution of the court of appeal, the value and the terms of the contract signed between the shipyard and the Ministry for the supply of experimental vessel Ladoga signed on April 3, 2013 changed when considerable changes were introduced into the design documentation. However, the Ministry of Defense refused to cover the shipyard’s actual expenses for the construction which exceeded the initial cost more than two-fold.

In this regard, the decision of the Arbitration Court of Moscow dated October 24, 2022 recognized the shipyard's claim against the Ministry as subject to partial satisfaction.

Pella shipyard based in Russia’s Leningrad region was founded in 1950. Pella was privatized in 1992. Reorganization of Pella JSC was completed in November 2022 with Pella SK, LLC taking over the rights and obligations under shipbuilding contracts on construction of fishing ships and Pella-Stapel, LLC acting as a contractor (its assets were acquired by Norebo in spring 2022).

Pella SK, LLC and Pella-Stapel, LLC are under control of Norebo although the process of Pella’s property transfer to Pella SK has not been completed yet.