Novorossiysk Rolling Plant

History

2024: Italian Danieli paid 0.5 billion rubles to Novorossiysk rental plant by court decision

The Italian company Danieli in the spring of 2024 paid almost ₽500 million to the Novorossiysk rental plant by decision of the Arbitration Court of the Rostov Region, which was confirmed by the appellate instance. This amount includes principal and interest, which was the result of a lawsuit that began due to non-fulfillment of the terms of the contract for the supply of a rolling mill.

According to Interfax on August 29, 2024, the Arbitration Court of the Rostov Region decided to recover €4.46 million from Danieli in favor of the Novorossiysk Rolling Plant, of which €4.372 million amounted to the main debt, and €88 thousand - accrued interest. After the court decision entered into force, the parties entered into an additional agreement, according to which Danieli's subsidiary, Danieli Volga LLC, paid off the debt in rubles calculated at the exchange rate as of the date of the announcement of the court decision.

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According to the payment instructions submitted to the court, Danieli transferred ₽432,418 million and an additional ₽8,9 million to pay off the debt. After that, the court granted the request of the Italian company to cancel the interim measures, which were introduced in October 2023. These measures included the seizure of Russian assets controlled by Danieli, such as stakes in Danieli Volga LLC, Danieli Henschel Service LLC and Elsid-Cheda LLC.

The conflict between the Novorossiysk Rolling Plant and Danieli arose against the background of non-fulfillment of the terms of the contract concluded in 2018, according to which the Italian company pledged to supply a rolling mill with a capacity of 600 thousand tons per year. Due to the disruption of the supply, the Russian side demanded the return of the paid part of the advance, which became the subject of litigation. In turn, Danieli filed a counterclaim demanding the collection of the underpaid part of the advance payment in the amount of €1.379 million and penalties, but the court sided with the Novorossiysk Rolling Plant.^[1]

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