HomeWorld RegionsEuropeCourt to rule over RWE dispute with Russian firm

Court to rule over RWE dispute with Russian firm

A court in Hamm, Germany has set a June15th date for ruling over a dispute between RWE and Russian firm Sintez.

Sintez is claiming $790m in damages following the German utility’s decision to pull out of a partnership to jointly take over Russian electricity generator TGK-2 in 2008.

RWE cited uncertain market conditions for the failed takeover due to the global financial crisis for its decision. However Sintez filed a claim for $1.41bn with the London Court of International Arbitration, which was dismissed.
RWE building
They have since gone to the regional court in the city of Essen allowing Sintez to pursue damage claims against Juergen Grossmann, RWE’s chief executive from 2007 until 2012, but not against RWE itself.

Both Grossmann and Cyprus-based Sintez unit Rustenburg subsequently appealed to the higher regional court in the city of Hamm as the next higher legal authority.

The Hamm court said in a statement it may seek legal opinions regarding British and Russian law which it says had been relevant in previous decisions and may have to be taken into account before deciding whether the lawsuit was valid.