The Arbitration Court of Russian's Northwestern District has refused to recognise an International Chamber of Commerce arbitration ruling in the Lavna Port case, reports Saint Petersburg's PortNews.

The ICC tribunal had denied Lavna Commercial Sea Port LLC recovery of EUR6.1 million (US$7.1 million) from Latvia's LNK Industries and EUR2.6 million from Germany's Thyssenkrupp Industrial Solutions. The First Deputy Transport Prosecutor of the Northwestern Transport Prosecutor's Office objected to recognition of the award in Russia, and the Arbitration Court of the Murmansk Region upheld the objection.

LNK Industries filed a cassation appeal seeking to overturn the ruling, but the Northwestern District court dismissed the appeal and upheld the lower court's decision. The courts found enforcement of the ICC award would be contrary to Russian public policy.

In 2018, Lavna Port, State Transport Leasing Company and the two foreign contractors signed an agreement for equipment supply and installation at the Murmansk coal terminal, funded with RUB27.7 billion (US$340,000) from the federal budget. Advance payments of EUR8.79 million were made, with LNK receiving ��.14 million and Thyssenkrupp EUR2.64 million.

Following EU sanctions, the foreign contractors refused to fulfil installation obligations, prompting Lavna Port to demand repayment. The ICC tribunal denied the claim, but Russian courts have now refused to recognise the award.