TOGLIATTIAZOT FILES A LAWSUIT IN THE INTERNATIONAL COMMERCIAL ARBITRATION

OJSC Togliattiazot (ToAZ), the largest manufacturer of ammonia in Russia, has filed a lawsuit in the international commercial arbitration court at the CCI of Ukraine (ICAC) with the claim to recover loss of USD 11.5 million incurred due to actions by UGP Ukrkhimtransammiak (UKHTA). ToAZ believes UKHTA violated contractual obligations for ammonia transit by terminating the contract unilaterally.

The decision to appeal to court was taken after the refusal of the UKHTA management to satisfy the request of OJSC Togliattiazot, filed on January 13, 2017, and resolve the situation via negotiations.

"We believe that UKHTA seriously violates the contract and is obliged to make a transit. ToAZ will not sign an additional agreement providing for unreasonable cost increase proposed by our Ukrainian partners," said CJSC Togliattiazot Corporation's CEO Vyacheslav Suslov. "If Ukrkhimtransammiak fails to immediately resume fulfilling its contractual obligations, our losses will continue to grow, and Togliattiazot will seek compensation, and also in international courts."