Lukoil caused $4 billion worth of damage to Palmali - Mansimov

Palmali Holding is going to sue Lukoil’s daughter company Litasco for the second time, head of Palmali Holding Mubariz Mansimov told Anadolu agency.

According to him, Palmali Holding wants $2 billion compensation from Litasco: “We applied to London Arbitrage Court and want $2 billion compensation from Litasco. In turn, Lukoil feared this and wants to sell Litasco. This is fraud”.  

Mansimov added that on January 18, 2005 Palmali and Litasco signed a contract for the period of 10+5 years. According to the contract, Palmali had to buy $440 million ship from Litasco.  However, Palmali Holding faced $4 billion loss due to breach of contract by Litasco. In 2015, the both companies tried to hold negotiations again. But the terms and provisions put forward by the opposite side had no legal grounds. However, Litasco presented these illegal grounds as legal grounds. The goal was to sell the company at higher price and prevent the shares from depreciation. However, Palmali Holding states that several provisions of the new contract are illegal and we did not sign new contract with Litasco”.


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