Court in Moscow ordered Siemens to supply RZD 13 Sapanov

The Moscow Arbitration Court invalidated the termination of the contract between Siemens Mobility and Russian Railways holding (Russian Railways) for the supply of 13 Sapsan trains, should from the court filing.

“To invalidate the decision to unilaterally terminate the contract No. 3484340 dated 06/07/2019, concluded between the Russian Railways Open Joint Stock Company (TIN 7708503727) and Siemens Mobility GmbH,” the court decision says.

In addition, Siemens Mobility denied the motion to leave the claim without consideration. The company was also charged 6,000 rubles. for the payment of state duty. It is specified that Siemens Mobility can appeal the decision within a month.

The defendant stated that it was impossible to fulfill obligations under the contract due to sanctions, according to the case file. The court considered that the arguments of the German company contradict the explanations of the European Commission and the terms of the contract, which was concluded before the introduction of Russian Railways sanctions. They noted that the restrictions cannot affect the supply of 13 passenger electric trains.

The court noted that the defendant did not have the right to terminate the contract unilaterally, such a decision violates the norms of Russian legislation and international law.

In 2019 Russian Railways concluded With Siemens and Ural Locomotives (a joint venture of the German concern and the Sinara group) a contract for the supply of Sapsan trains. The total value of the transaction amounted to 1.1 billion euros, including a contract for the supply of 13 10-car electric trains worth 513.5 million euros and an additional service agreement for 30 years in the amount of 583.1 million euros. According to the contract, the delivery was scheduled from September 2022 to July 2023.

Against the backdrop of anti-Russian sanctions in May last year, Siemens announcedwhich breaks service contracts with Russian Railways, including the maintenance of Sapsan.