A Scania worker from Scania Donbas. Foto: Emil Filtenborg.

The Commercial Court in Kyiv has upheld a lawsuit requiring Scania to pay 164 million UAH (6.8 million USD)  to Proscan, a former Scania dealer.

Scania has decied to appeal a court decision requiring them to pay Proscan, a former Scania dealer, 164 million UAH because of lost profits, Scania writes in a press statement. The case is in many ways similar to a previous case, where Scania Ukraine won the case against Zhuravlyna – another former Scania dealer – that sued Scania for lost profits.

According to Scania, they have been dealing through Proscan for a long time, but as an outstanding loan made it “impossible for Proscan to fulfill its obligations under the dealer agreement,” as Scania puts it, they decided to terminate the arrangement. Therefore, Proscan has filed a claim for reimbursement of allegedly lost profits.

While Scania’s position is clear, Ukraine Nu have not been able to find any counter arguments or releases from Proscan, the former Scania dealer.

Not the first time

Not long ago, Scania – as mentioned – won a lawsuit in a similar case. Zhuravlyna, another former dealership, claimed that Scania was responsible of lost profits, because Scania cancelled the partnership in 2017. They were supposed to buy parts from Scania at a discounted price to work as  a service station, but according to Scania, instead they used off brand parts when servicing and repairing trucks.

Scania then cancelled the contract, as the use of off brand parts is in violation with the terms and conditions prompting a lawsuit from the Rivne based company Zhuravlyna. Scania is behind 27 percent of Western heavy equipment on the Ukrainian market. They have paid over 97 million euros in taxes and invested more than 38 million euros in Ukraine since 1998.

On Ukraine Nu, we have been following the case between Scania and Zhuravlyna. In this article much more background information about the court case and the suspicion of corruption regarding the case. In the article, Ints Krastins, CFO at Scania Ukraine, is interviewed about the company’s perspective on the case. The article was written in Danish.

A visit to Scania in Donbas

Ukraine Nu also visited Scania in Donbas, where they operate a service center. The center is located in the city of Kramatorsk, the new regional main city in the Donetsk region. Though Kramatorsk does not have the same industrial power as it used to during the Soviet Union, it is still a centre of both coal mining and production of heavy equipment. That is also why Scania has a local sales and service office there.

“The sales are growing year on year, but if there was peace here, we would be growing even faster,” Victor Klimko, the head of the local department tells Ukraine Nu in the Eastern town of Kramatorsk.