LG and Skinest Baltija reach agreement on rolling stock contract dispute

Lithuanian railway company Lietuvos Gelezinkeliai (LG) and Skinest Baltija, operated by Estonian railway equipment trade company Skinest Rail, have reached a settlement concerning the dispute on the delivery of 150 platform cars. The settlement was endorsed by the Lithuanian Supreme Court. Under the settlement, Lietuvos Gelezinkeliai will pay Skinest Baltija EUR 526,100, while the latter will pay the Lithuanian railway company EUR 200,000.
According to a contract signed between the two companies in 2011, Skinest Baltija was to deliver train cars manufactured by Russia’s Abakanvagonmash by November of 2011. The contract could not be implemented after Russia banned imports of car parts from Ukraine. Therefore, LG terminated the contract with Skinest Baltija in December of 2011 and launched a new tender, which was won by Latvia’s Sigmen. The Latvian cars cost more, causing EUR 2.5 million in damages for the Lithuanian railway enterprise.

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