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Arms producer's $86 mln suit against export dealer delayed until February 14

15:19 08/02/2012

MOSCOW, February 8 - RAPSI. The court declared on Tuesday a recess until February 14 in the hearing of the Armtech arms producer's lawsuit to recover $86 million from the Rosoboronexport state-run defense export corporation, the Russian Legal Information Agency (RAPSI/rapsinews.com) reports from the courtroom.

Armtech Chief Engineer Vladimir Vishnevsky told RAPSI that the company received a foreign arms development order in 2001, but failed to fulfill it in a timely manner due to a lack of customer financing. Rosoboronexport's subsequent financing did not help to fulfill the order.

Armtech seeks from the company1.63 billion rubles ($63 million) in lost profit, as the order would have brought Armtech $50 million.

It also demands 120 million rubles ($4 million) in penalties for "unproductive financing," which resulted in the order fulfillment time being increased by six years.

Vishnevsky added that Armtech did not pay wages for two years, which is an insult for which Armtech seeks partial compensation amounting to 16 million rubles ($532,000). He also noted that its activities have not been financed since May 2009.

The defendant refuses to meet the claims, stating that the plaintiff fails to understand the essence of their contractual relations. Armtech seeks funds from Rosoboronexport, although it only acted as an intermediary between the customer and the contractor, which terminated the contract.

Amtech is a research and engineering complex and a laser-guided artillery arms manufacturer.

Rosoboronexport is a world arms market leader and the only Russian government defense and dual purpose product, techniques and services exporter and importer, having 80-percent share of the country's military equipment exports.

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Arms producer's $86 mln suit against export dealer delayed until February 14

15:19 08/02/2012 The court declared on Tuesday a recess until February 14 in the hearing of the Armtech arms producer's lawsuit to recover $86 million from the Rosoboronexport state-run defense export corporation.
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