Plant Artem is ready to continue to perform the contract with a new supplier equipment
The plant is now Artem is taking steps to implement the arbitral award against Gray Fox in the USA.
State joint-stock holding company Artem has won the arbitration process, the American Gray Fox, which did not fulfill the contract for the manufacture and the supply lines for the serial production of bodies of heavy shells in the enterprise. This reports the press service of the Ukroboronprom concern Wednesday, July 15.
“The panel of arbitrators of the Arbitration Institute of the Stockholm chamber of Commerce fully satisfied the claims of SJSHC Artem and decided to charge the company Gray Fox (Gray Fox Aviation and Logistics, Inc.) in favor of the plant the amount of $ 8.3 million received as advance payment under the contract and to reimburse all additional costs associated with the process”, – stated in the message.
It is specified that now the company is taking steps for performing the specified arbitral award in the United States.
According to the Director General of the Ukroboronprom Aivaras Abromavicius, the total amount that will be received by the company at the end of the trial, will be about $ 9 million.
“The lawsuit is completely satisfied, the factory was awarded a sum of compensation: and what was listed as advance payment under the contract, and all legal expenses and costs of the process itself… In sum, I think it’s almost $ 9 million. But most importantly, upon completion of all litigation Artem is ready to continue to perform the contract with a new supplier of equipment – to build a line and start mass production of shells, – said Abromavicius.
He also noted the excellent work of counterintelligence.
“Thanks to their information we obtained irrefutable proof of the improper performance of the contract by the company Gray Fox for the international court of justice, which significantly helped us to win,” – said the head of the concern.
The Parties recalled that in March 2018 Zavod Artem signed a contract under the state defence order with the American company Gray Fox for the supply of a strategically important line for the manufacture of shells of calibre of 152 and 155 mm.
In may of the same year Artem has paid the supplier the advance payment – $ 8.3 million for equipment at the plant had not arrived and the line was never built. The American company initially tried to replace the volume and value of the equipment for the line to move the date of supply, and closer to the completion of the contract, its representatives stopped to communicate and give information to the queries of the enterprise.
In may 2019 SJSHC Artem began arbitration proceedings against Gray Fox in the Arbitration Institute of the Stockholm chamber of Commerce. It lasted almost a year and ended in complete victory of the Ukrainian defense enterprises.
According to militiamen, the funds received by the supplier as advance payment, was almost entirely transferred to private accounts of the leadership of the Gray Fox and members of their families, that is, used inappropriately. And lasted until the trial, chief operating officer of the American company, which managed the project, was sentenced to 12,5 years of imprisonment for organization of international fraud schemes, with an obligation to pay the victims $ 7 million compensation.
Recently the media reported that the partners of the businessman Igor Kolomoisky “threw” the defense industry. According Bihus.Info he founded two companies, along with the American company Gray Fox, which in 2018-2019 had not complied with the terms of the contract with the defense plant Artem and did not return the advance payment in the amount of 8.3 million dollars.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my email@example.com 1-800-268-7128