The Swedish truck company Scania has won an appeal in a 4.5 million dollar lawsuit. The lawsuit was filed against Scania by their former partner Zhuravlyna.
Yesterday, the Swedish truck manufacturer Scania won a USD 4.5 million lawsuit. Zhuravlyna claimed that Scania was responsible of lost profits, because Scania cancelled the partnership in 2017, writes the Kyiv Post.
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. According to Kyiv Post, 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.
Dealings with Scania
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.
Ukraine Nu even 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.
During the court case, Scania have been withholding new investments, but now when the storm is over, Scania is ready to develop their business further in Ukraine.