Russian USC, German MTU Discuss Engines Russia Paid for but Never Received

Russia’s United Shipbuilding Corporation (USC) and German MTU engine manufacturer discussed the situation with diesel engines which Russia has paid for but has never received after the introduction of the EU sanctions against Moscow, the head of the USC said Monday.

MOSCOW (Sputnik) — Earlier USC head Alexei Rakhmanov said that his company is going to sue the German company for refusing to supply the prepaid engines for Russian corvette ships. The contract is reportedly worth 24 million euro (some $26,5 million).

“We are now preparing our court position on MTU. We have met with them, explained them … where they are wrong. It appears that the colleagues have understood us, we hope we can resolve this situation with small losses,” Rakhmanov said in an interview with Echo Moskvy radio.

The meeting between representatives of USC and MTU took place on the sidelines of the International Maritime Defense Show that took place in Russia’s second-largest city of St.Petersburg from July 1 to July 5.

The German MTU company is one of the world’s leading manufacturers of large diesel engines used on large ships and heavy agricultural and rail vehicles.

The European Union started introducing sanctions against Moscow in 2014, citing the Kremlin's alleged involvement in the Ukraine crisis – the claim that Moscow repeatedly denied. In June 2015, the bloc decided to prolong its sanctions for another six months.