Swedish company to return 4.3 million kronor for non-delivery of water cannons to Russia

The St. Petersburg company "MTD" has won a legal dispute with the Swedish manufacturer of marine equipment Marine Jet Power AB (MJP). The Arbitration Court of St. Petersburg and the Leningrad Region has recovered 4.3 million Swedish kronor from the Swedish side — the amount of the advance payment for the undelivered water jet complex.

The issue concerned the supply of two MJP series 550 water jet propulsion units and a JetMaster3 control system. The equipment was intended for JSC "Central Marine Design Bureau \"Almaz\"" — one of the leading design organizations in Russian shipbuilding. The contract between MTD and MJP was concluded in 2021.

In the summer of 2022, Marine Jet Power AB officially notified its Russian partner that the Swedish government had refused to issue an export license for the equipment. After that, the parties signed an agreement to terminate the contract, which stipulated the return of an unworked advance payment of 4.29 million Swedish kronor.

However, it was not possible to return the money voluntarily. In June 2024, Swedbank AB, which serves the Swedish manufacturer, refused in writing to make any payments to or from Russia under this contract. The refusal became a de facto obstacle to the fulfillment of the termination conditions, and MTD was forced to apply to arbitration.