South Korea’s Samsung Heavy Industries is going to the Singapore International Arbitration Centre to file a case against a Russian shipyard owner that cancelled contracts worth $4.3bn for the supply of oil and gas tankers.
Samsung Heavy said yesterday it will sue Zvezda as the Russian shipbuilder, which faces sanctions from the US, asked the Korean shipbuilder to return $800m worth of downpayments received and pay interest for arrears after unilaterally canceling two contracts worth $4.3bn.
Zvezda informed Samsung Heavy on Tuesday of the cancellation of its contracts for the supply of blocks and equipment including 10 icebreaking LNG carriers and seven icebreaking shuttle tankers.
