Nektorov, Saveliev & Partners has represented the Zhefu Holding Group before the Amur Oblast Arbitration Court in a case related to the recognition and enforcement of a Beijing Arbitration Commission decision.
Zhefu Holding is a Chinese hydraulic power equipment supplier. The company’s business focuses on hydropower, nuclear power, oil & gas, microfinance, and other areas.
According to the firm, the arbitration proceeding at the BAC concerned a dispute between Zhefu Holding and Russia's Elektrostroy Sirius regarding the recovery of a debt under the supply agreement for hydraulic power equipment.
"The equipment was intended for the construction of a small hydroelectric power plant in Zaragizh village, the Kabardino-Balkarian Republic," the firm informed. "The total contract price was RUB 240 million, of which only 50% was paid in favor of our client. The buyer of the equipment refused to pay the remaining part upon the pretext that the equipment was of inadequate quality and the hydraulic power equipment was not put into operation."
According to NSP, in the course of the arbitration proceedings, Zhefu Holding proved that the equipment was delivered in accordance with the terms of the agreement and consequently, the panel of arbitrators imposed the recovery of a RUB 122 million principal debt and other punitive sanctions.
"Due to the fact that the Russian buyer did not repay the debt, the client applied to the Arbitration Court of the Amur Oblast with an application for recognition and enforcement of the foreign arbitral award," according to NSP. "The court satisfied the application for recognition and enforcement of the arbitration award in full."
