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Russian Clients Demand 1.2 Trillion Won in Damages from Hanwha Ocean

Hanwha Ocean (formerly known as Daewoo Shipbuilding & Marine Engineering (DSME)) announced on Jan. 31 that three Russian clients have filed an arbitration with the Singapore International Arbitration Center, claiming damages worth 1.1599 trillion won (US$877.36 million).

Hanwha Ocean had previously canceled all contracts for three liquefied natural gas (LNG) icebreakers ordered by Elixon, Azoria and Glorina.

This was due to the delayed and interrupted supply of key equipment to the region due to economic sanctions imposed on Russia after Russia’s invasion of Ukraine, and the Russian clients’ failure to pay in time.

Hanwha Ocean explained that the shipbuilding contracts were terminated in accordance with the terms of the contracts. “The Russian clients are to blame for not making the payment,” said a Hanwha Ocean official. “The Russian clients have filed for arbitration, but no particular problem is facing us.”
Source: Business Korea

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