MOSCOW, July 3 (RAPSI) - The Moscow Commercial Court has ruled that the Russian Defense Ministry must pay Rocket and Space Corporation Energia 104 million rubles ($1.8 mln) in debt from a state contract dispute, RAPSI reports from courtroom.

In 2007, the parties closed a state contract to carry out research and development. RCS Energia received an advance payment of 498.2 million rubles ($8.9 mln).

In May 2010, the Main Weapons Directorate of the Russian Armed Forces notified the plaintiff that it was necessary to suspend the work under contract as it was deemed no longer relevant. The Weapons Directorate also proposed an inspection of material assets and an audit of the actual expenses incurred by the company under the contract.

The audit revealed that the actual expenses totaled 104 million rubles ($1.8 mln). The plaintiff repeatedly requested that the client established a commission to negotiate the issue, but it never happened.

In 2012, despite the lack of a resolution in the contract termination, RCS Energia returned the advance payment, or 338.4 million rubles ($6 mln) minus 159.8 million rubles ($2.8 mln) for the completed work.