The Commercial Court of Donetsk Region demands that the aggressor country Russia compensate 3.26 million UAH ($83.5 thousand) of lost profits in favor of the Ukrainian enterprise LLC "Wagon Company "Transsystema".
Points of attention
- LLC 'Wagon Company Transsystema' suffered losses due to the inability to operate railcars under lease agreements, resulting in the court ordering the recovery of the lost profits from Russia.
- This legal case highlights the financial repercussions faced by Ukrainian businesses as a result of the armed aggression of the Russian Federation and the complexities of seeking compensation through legal channels.
Donetsk court orders Russia to compensate Ukrainian firm for losses
This is indicated by the court decision of April 24.
In general, it is said that 4 years ago, Transsystem leased 6 wagons to VKTS LLC for the transportation of various types of cargo, in addition to hot pellets, hot granulated slag, sulfur, and clay.
What is important to understand is that after Russia's full-scale invasion of Ukraine, the wagons remained in the occupied territory.
According to Ukrzaliznytsia, the stations of the last deployment of the wagons are Inzhenerne, Melitopol, Mariupol-Sortuivlny, Volnovakha, Velyko-Anadol, which are located in the temporarily occupied territories of Ukraine. 2 years ago, Transsystema sold the wagons to VKTS LLC.
"The Transsystem railcar company believes that as of February 24, 2022, as a result of the armed aggression of the Russian Federation, it was deprived of the opportunity to operate railcars under concluded lease agreements (to make a profit), because they were located in the occupied territory (in the Donetsk and Zaporizhia regions).
Against this background, the company suffered losses in the form of lost profits in the amount of UAH 3.26 million.
The court sided with the plaintiff and ordered the recovery of the amount of lost profits from the Russian Federation, represented by the Ministry of Justice of the Russian Federation and the Ministry of Defense of the Russian Federation, in favor of LLC "Wagon Company "Transsystema".
