Ukrtranscontainer will have its day in court

Alexander Voronkov of the National Container Company of which UTC is a subsidiary, said it has applied to the European court “due to exhaustion of local remedies”.

In 2005, UTC became an investor according to the terms of the Joint Operation Agreement signed by UTC and the Sea Commercial Port of Illichivsk until 2035. By the end of 2007, the company had completed the first phase of the program and UTC had invested over $61m into the project.

Mr Voronkov explained that technology and infrastructure investments at the UTC terminal enabled an increased number of deep sea carriers to launch direct services to the terminal from China and deploy vessels with an in-take capacity up to 6,000 teu. He went on to say that despite this, the Ukrainian Supreme Court terminated the agreement, citing an ambiguous legal clause which uses the term “inefficiency for the Ukraine” whereupon the port authority started using the impounded UTC equipment for its own operations, without, it seems, reimbursing UTC.

In its claim, UTC is seeking (among other things) recognition of the right to a fair and public hearing, and the right to an effective remedy.

The investor has also filed a claim for just satisfaction to the amount of $1.4bn, taking into account losses caused by the illegal termination of the agreement including loss of profit.