In 2016, one of our clients performed boat repair works under a government contract with the Internal Troops of the Ministry of Internal Affairs of Russia (the customer).

The work under the contract was accepted by the customer, but the military agency did not agree on the amount of expenses incurred. Based on the report by the military agency, Rosgvardia (formerly the Internal Troops of the Ministry of Internal Affairs of Russia) refused to pay more than 5 million rubles.

Aspectum filed a lawsuit in the Moscow Arbitration Court to recover the unpaid debt, based on the fact that the work under the contract was completed in full and with proper due diligence and quality, and that the government contract does not grant the right to reduce the cost of contract work for the amount not approved by the military agency to the customer.

The Moscow Arbitration Court ruled to satisfy our client’s requirements in full on November 30, 2017, (case A40-56080 / 17-51-507).

This decision was left unchanged by the decision of the Ninth Arbitration Appeals Court of March 1, 2018. The court agreed with Aspectum’s position that the government contract did not grant the military agency the right to reduce the cost of contract work even if expenses under the contract need to be approved by the military agency.

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