The State Railway Administration (Ukrzaliznytsia) is suing the Premier Leasing company over a contract for supply of locomotives. Ukrzaliznytsia’s First Deputy General Director Maksym Blank announced this to journalists, the CFTS correspondent reports.

"The cost is being reviewed, and there is mutual debt: they received advance payments from us, but they did not deliver the products. Accordingly, we froze payments under this program. All this is now under review. There are no active programs with Premier Leasing that are not being reviewed. Negotiations and litigation are taking place simultaneously,” said Blank.

Earlier, Premier Leasing offered Ukrzaliznytsia a grace period and agreed to lower interest rates.

As reported earlier, the Donetsk, Lvov, and Odessa railways signed contracts with Premier Leasing for supply of 350 locomotives in 2013 based on the results of the relevant tenders. The state-owned enterprises Darnytsky railcar repair plant and Ukrspetsvagon concluded agreements with Premier Leasing for supply of 5,000 gondola cars in 2012.

Ukrzaliznytsia has also suspended its contract with the Tbilisi electric locomotive plant, which supplied the VL11M/6 electric locomotives to Ukraine.