AALBORG: Aalborg Forsyning was within its rights to cancel an order for Russian coal after the EU imposed sanctions against a number of Russian oligarchs. An international arbitration court has decided this, Aalborg Forsyning writes in a press release.
The Russian coal supplier Siberian Coal Energy Company (Suek), in addition to payment for the coal delivery of 29 million kroner, also demanded 188 million kroner in compensation from the North Jutland utility company.
The arbitration court has rejected all claims from the Russian coal supplier and ruled that Aalborg Forsyning was subject to sanctions.
The case concerned a delivery of coal that Aalborg Forsyning ordered shortly before Russia's invasion of Ukraine in February 2022. At that time, Suek was owned by the Russian billionaire Andrei Melnichenko, Aalborg Forsyning informs.
However, as a result of Russia's invasion of Ukraine, the EU imposed sanctions against a number of Russian oligarchs and businesspeople, including Melnichenko. This meant that funds belonging to persons on the sanctions list or companies owned by the persons were frozen.
Therefore, Aalborg Forsyning's payment for the coal delivery was frozen by the bank.
Later, the supply company chose to terminate the agreement on the delivery, as Suek, in Aalborg Forsyning's opinion, was closely linked to persons on the sanctions list.
/ritzau/
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