Odfjell has been notified that Sevmash, the shipyard against which Odfjell won an award of USD 45 million including refund of expenses in the arbitration last year in Stockholm, voluntarily will not pay the amount awarded.
This means unfortunately that Odfjell has to formally seek enforcement of the award through the courts in Russia. The timing of such process is difficult to assess and it will lead to a delay in receiving the full payment, including however interest of 8,5 percent p.a. as from 30 December 2009.
Odfjell has made contact with the Norwegian authorities to seek guidance in this process against a corporation fully owned by the Russian State.