Thursday, December 14, 2017

Court dismisses UEN Cyprus' claim against Urals Energy

A Moscow arbitration court dismissed UEN Cyprus' claim against Urals Energy last week based on jurisdictional grounds.

The case stems from UEN Cyprus' $41.7 million claim against Urals Energy dealers over an alleged debt agreement made in 2010 between the two companies. UEN Cyprus' attorneys maintain that Urals Energy is liable for the full amount of repayment. Urals Energy said, however, that it does not believe the debt repayment agreement is genuine and therefore will not comply with its terms of repayment, LSE.co.uk reports.

Following the Moscow court's dismissal of its claim, UEN Cyprus' attorneys plan to make an appeal and will launch a new claim in a civil court with the appropriate jurisdiction over both companies.

UEN Cyprus' owner--Vyatcheslav Rovneiko--is the former director of Urals Energy. While in the position with Urals Energy, Rovneiko was ordered to pay UEN Cyprus $3.7 million in 2012 after arbitration proceedings to recover a separate loan agreement, according to LSE.co.uk.

Meanwhile, the share price of Urals Energy climbed 7.2 percent following the court's dismissal of Cyprus' claim.