According to available information, investors have terminated contracts for the construction of 21 vessels under the “quotas-for-keels” programme, while at least four more contracts are in the process of being terminated.
Case law on the termination of such contracts is still evolving, but there is no clear tendency to favour either customers or shipyards, Ivan Kobchenko, Director of the St Petersburg office of NAVICUS.LAW, told Vedomosti. The parties typically opt for a settlement agreement, whereby the shipyard refunds the unearned portion of the advance payment and pays a contractual penalty in exchange for securing a new customer for the project, he notes.
Where a contract has already been terminated, the fishing company cannot assume that its quota will automatically be retained. However, the shipyard may be replaced, provided that the government approves amendments to the investment project. In such circumstances, the fishing company may be allowed to keep its quota, the lawyer adds.
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