The court seized the funds and property of the Russian “daughter” of Baker Hughes

The Arbitration Court of the Yamalo-Nenets Autonomous District introduced preliminary interim measures in the form of an arrest on the funds and property of Baker Hughes Rus Infra LLC in the amount of $50.7 million and 47.34 million rubles. About it says in the ruling of the court.

On August 9, Yamal LNG filed a lawsuit against the Russian structure of the oilfield services company Baker Hughes. According to the documents, the company demanded to seize the money, movable and immovable property of the legal entity in the amount equivalent to $50.7 million and 47.34 million rubles, as well as the money that will be credited to the company’s accounts.

Yamal LNG’s claims are related to the supply of parts. Specifically, in March, the company filed a claim with Baker Hughes Rus Infra seeking $11 million in advance payments for parts not delivered, $6.5 million for maintenance services not provided, and reimbursement for the cost of 12 gas seals that were handed over for repair. and not returned, in the amount of $1.45 million and reimburse losses under the replacement transaction for $155,951. In addition, Yamal LNG insisted on compensation for the cost of a blade from a set of blades of the 1st stage, which was transferred for repair, in the amount of $17,683 and the return of funds for the payment of customs duties under the contract in the amount of 47.34 million rubles.

The Russian company also sent a notice of termination of the contract and demanded compensation in the amount of $31.56 million. However, Baker Hughes Rus Infra did not satisfy these demands.

Representatives of Yamal LNG explained the need for interim measures by saying that Baker Hughes Rus Infra is acting in bad faith and does not intend to fulfill its obligations under the pretext of sanctions against Russia, and is also alienating Russian assets and withdrawing from projects in Russia, which increases the risk of being unable to comply with the decision courts in the future. In addition, the company pointed out that the plaintiff “will be practically impossible to get satisfaction of his claims outside of Russia” due to the interpretation by European counterparties of the current regulation in the field of sanctions.

As a result, the court granted the company’s application for interim measures. “To determine the period of validity of preliminary interim measures of 15 working days, if during this time the main claim is not filed with the arbitration court,” the ruling says. Yamal LNG plans to apply to the International Commercial Arbitration, which is administered by the International Chamber of Commerce.

Baker Hughes announced the suspension of work in Russia after the start of a special operation in Ukraine. Russian President Vladimir Putin approved the sale of Russian assets of Baker Hughes to local management. The new company began operating in November 2022 under the name OFS Technologies. However, Baker Hughes Rus Infra is still controlled by the Dutch entity Baker Hughes.

Yamal LNG is a gas liquefaction project with a design capacity of about 17.5 million tons per year, the resource base for which is the Yuzhno-Tambeyskoye field. “Novatek“- the main shareholder of the project: he owns 50.1% of Yamal LNG. Another 20% of the project belongs to the French TotalEnergies and the Chinese CNPC, 9.9% – to the Chinese SRF.