Murmansk Arbitration Court Upholds Lavna Coal Port's €8.8 Million Claim Against European Contractors

The Arbitration Court of the Murmansk Region upheld Lavna Seaport LLC's €8.8 million damages claim against Latvia-based LNK Industries and Germany-based Thyssenkrupp Industrial Solutions. The claim was filed in spring 2025, and Lavna Seaport demanded several damages from the European contractors that had failed to fulfil contractual obligations due to sanctions.

In the dispute, EU companies halted supplying equipment and services for the coal port project in Russia under EU sanctions. However, they also failed to return the advance payments they had previously received. Lavna Coal Port is part of Russia's strategic coal export infrastructure in the Murmansk region and requires heavy equipment investment.

Enforcement of the ruling will be complex within the sanctions regime between the EU and Russia. Lavna Seaport executives stated that the compensation will be used to complete the project with alternative Russian and Chinese suppliers. In the sanctions era, the question of contract termination and return of advance payments is increasing the number of similar cases filed by Russian companies against their European partners. The event marks a new turning point in the legal dimension of EU-Russia economic relations.

Key Takeaways:
1. The Murmansk Arbitration Court upheld Lavna Coal Port's €8.8 million damages claim.
2. The defendants are Latvia-based LNK Industries and Germany-based Thyssenkrupp Industrial Solutions.
3. The EU companies failed to fulfil contractual obligations due to sanctions.
4. Advance payments received earlier were also not returned.
5. The compensation will be used to complete the project with alternative Russian and Chinese suppliers.