The courts supported a supplier who was unable to fulfill a government contract due to sanctions
In August 2022, the parties entered into a contract for the supply of equipment. The customer did not receive the goods on time and refused the transaction. Claims were sent to the supplier demanding to supply the products and pay a penalty, but he did not do so.
The courts did not collect the penalty, deciding that the customer should have written it off:
• Sanctions against Chinese companies prevented the contract from being executed on time. The supplier planned to purchase components from them for the production and supply of equipment. The restrictions were introduced in October 2022, i.e. after the conclusion of the transaction;
• the supplier took all measures to ensure the proper fulfillment of obligations. He agreed in advance with the counterparty to supply components, but the deal fell through. Other contractors responded that due to sanctions they would not be able to deliver products or would do so later than necessary. The customer was informed about the difficulties;
• The Office of the Federal Antimonopoly Service did not include information about the supplier in the register of unscrupulous suppliers, since it did not see any unfair behavior;
• in 2022, the supplier concluded more than 30 contracts of the same type. Before the cessation of supplies from China, some of them were fulfilled. For unfulfilled and terminated transactions, the penalty was written off.
The courts also noted that the absence of written evidence of force majeure, for example the conclusion of the Chamber of Commerce and Industry, does not prevent in such cases from writing off the penalty under Rules No. 783.
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