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Court upholds penalty collection from Siemens

In 2019, Russian Railways made the contract with Siemens and Sinara for the purchase of thirteen Sapsan high-speed trains amounting to 513.5 mln euro

MOSCOW, May 22. /TASS/. The Moscow Arbitration Court has granted an application of Russian Railways regarding the daily penalty collection from Siemens Mobility GmbH due to noncompliance with the court decision, TASS reports from the court room.

"To collect from Siemens Mobility GmbH in favor of open joint stock company Russian Railways <…> the penalty for the case of non-performance of the court decision totaling 6.078 mln rubles ($75,850) per each day of noncompliance with the court judgment," the judge said.

In 2019, Russian Railways made the contract with Siemens and Sinara for the purchase of thirteen Sapsan high-speed trains amounting to 513.5 mln euro. The German company was to deliver trains from September 2022 to July 2023.

In 2022, Siemens withdrew from the Russian market and the company refused to perform the contract because of sanctions. The court recognized the refusal of Siemens to honor its contractual obligation as unlawful and ruled that the contract should be performed.

In February 2023, Russian Railways petitioned to collect the penalty from the German company due to noncompliance with the court decision.

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