ST. PETERSBURG, March 26 - RAPSI. The Thirteenth Commercial Court of Appeals upheld the decision awarding the state-run Rosmorport company $14 million in suit against the Baltiysky Zavod shipyard.
The plaintiff sought to recover compensation from the shipyard for the delay in construction of the Moskva (Moscow) and the St. Petersburg icebreakers.
The court dismissed the appeal filed by the defendant, though the judgment did not specify the reason behind the dismissal.
Baltiysky Zavod challenged the St. Petersburg and Leningrad Region Commercial Court's October 2011 decision.
Rosmorport and Baltiysky Zavod concluded a contract to build the icebreakers in October 2004. According to the contract, the Moskva ice breaker was set to be delivered to the customer no later than on May 31, 2008, and the St. Petersburg vessel was scheduled for delivery before September 30, 2008. The Moskva vessel cost $75.32 million, while the St. Petersburg - $78.59 million.
The court commenced a supervision procedure in Baltiysky Zavod under the bankruptcy case.
Baltiysky Zavod is part of the United Industrial Corporation owned by Senator Sergey Pugachyov. The factory builds icebreakers and military vessels. It manufactures a wide range of engineering products and energy equipment and supplies nonferrous and core-mold castings.