The Kyiv Economic Court has ruled that the Russian Ministry of Defense should pay RUB 29.32 million to the Antonov state enterprise and RUB 1.62 million in penalties under a contract to perform research and development work on the An-70 plane, the Interfax Ukraine news agency reports.
According to the database of court decisions, the court made this decision on 11 August 2014 based on a lawsuit that the deputy prosecutor for the central military district of Ukraine filed on behalf of the Industrial Policy Ministry and the Antonov state enterprise.
According to the materials of the case, the defendant was not present in court and the reasons for its absence were not disclosed, but it may appeal against the decision.
According to the document, the original contract was signed in May 1989 between a military unit and an enterprise belonging to the former USSR’s Ministry of Aviation Industry. The Defense Ministry and the Antonov state enterprise subsequently became the successors, respectively, and the parties to the contract. In particular, the Ukrainian enterprise cited a 2002 directive by the Russian defense minister that stated that he was assuming all the rights and obligations of the general customer under the contract.
According to the case materials, 14 supplements to the contract were signed in the period from 2003 to 2012. In particular, the supplementary agreement No. 9 dated November 2010 set the price of a phase of the work that was due to be completed in November 2012 at RUB 162 million, but the Russian Ministry of Defense did not take delivery of this phase within the prescribed period.
The penalty under the contract was to 0.1% of the cost of the implemented phase. An additional penalty of 1% of the cost of implementing the phase was payable after 15 days of delay.