Tashkent, Uzbekistan (UzDaily.com) -- The Arbitration Court of the Krasnodar Territory confirmed the decision of the Tashkent City Court and the ruling of the Supreme Court of the Republic of Uzbekistan in the framework of the conflict between the Uzbek company Stone Brick and the Russian company Stroyvektor.

The court ordered the Russian company to pay more than US$500,000 to the Uzbek company as a refund of the paid cost of low-quality equipment, penalties for late delivery and a fine for failure to complete adjustment work.

Previously, the Uzbek side demanded compensation for violation of the agreement on the supply and installation of equipment.

According to the head of Stroyvektor, Dmitry Zverev, the dispute arose in 2018-2019 in connection with concluded agreements with Stone Brick for the supply of equipment and bricks for Uzbekistan. The Russian company partially fulfilled the first order, delivering one working production line, and also made an advance payment for the expected supply of construction materials.

However, it soon became clear that Stone Brick would not be able to fulfill its obligations to supply bricks due to the reduced cost of sales.

Zverev claims that Stroyvektor offered to return the equipment to the Uzbek company with a refund in exchange for an advance payment. As a result, the company had to go to arbitration court to return the advance payment.

“The request was satisfied. The process of returning equipment took a long time. The Uzbek court, considering Stone Brick’s claim for the return of funds for the supplied equipment, did not make a decision regarding its return,” Zverev said.

Stroyvektor filed a cassation appeal with the Arbitration Court of the North Caucasus District and appealed to the court of Uzbekistan to resolve the issue of returning the equipment.