Last year, Aalborg Forsyning won an international arbitration case against the Russian coal company SUEK (Siberian Coal Energy Company), which is now called TerraBrown. The company was ordered to pay legal costs of 3.1 million DKK, but the payment failed to materialize. Now the money has been recovered via the bailiff's court. The utility company writes this in a press release.
TerraBrown stated in court that the company was unable to pay the amount, which led to the bailiff's court deciding that Aalborg Forsyning could cover the legal costs via a payment to SUEK, which Danske Bank froze in March 2022.
- Many have asked me if I thought we would ever get that money? Which I have always been convinced of, because the amount could be covered by the frozen funds. Now we have received the payment, and we can put an end to the matter completely, says CEO of Aalborg Forsyning Søren Gais Kjeldsen.
The disagreement with the Russian coal company began shortly before Russia's invasion of Ukraine, when Aalborg Forsyning entered into an agreement with SUEK for the supply of coal. Following the EU's sanctions against Russian oligarchs, Aalborg Forsyning's payment to SUEK was frozen by Danske Bank.
- We then chose to suspend and later terminate the framework agreement for the supply of coal that we had with SUEK, because in our opinion the company was closely related to a person on the sanctions list, says Søren Gais Kjeldsen.
SUEK then filed an arbitration case against Aalborg Forsyning, where the Russian company not only demanded payment for the coal delivery of 29 million DKK, which Aalborg Forsyning had already paid, but which had been frozen by the bank. The Russian coal company also demanded 188 million DKK. DKK in compensation due to the termination of the framework agreement. With legal costs of DKK 3.1 million, the case amounted to just over DKK 220 million.
However, a unanimous arbitration court rejected all claims and ruled in favor of Aalborg Forsyning. The bailiff's decision now ensures that Aalborg Forsyning will have its legal costs covered.
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