Privatization Agency to pay EUR 4 million compensation to Ukraine's Azov-impex

Based on the court ruling, the Privatization Agency will have to pay a compensation of EUR 4 million to Ukrainian company Azov-impex for "unfounded termination of the agreement on the acquisition of Kraljevo-based Fabrika vagona (Railway Car Factory)".
As the Commercial Court of Appeal has ruled, the Privatization Agency is to compensate the damage totaling about EUR 3.95 million with the accrued interest equaling the discount rate of the Central European Bank, as well as to cover the costs of the litigation amounting to RSD 3.2 million, the management of Fabrika vagona in Kraljevo told the Serbian national broadcasting corporation RTS.
The Court has established that the Privatization Agency deceived the buyer when selling Fabrika vagona by not telling Azov-impex that the factory in Kraljevo has multimillion debts.
The Ukrainian company has also pressed charges with the Commercial Court of Kraljevo, demanding a EUR 7 million compensaion on the basis of commercial contracts.
The Privatization Agency decided to terminate the sales agreement with Azov-impex in early 2010 because the buyer "failed to fulfill EUR 2.7 million investment obligations for the second and third year of operations and neglected the social program."
Upon the termination of the privatization agreement, Fabrika vagona Kraljevo is majority owned by the state which holds 86 percent stake in the company, while remaining 14 percent of shares are in the possession of minor shareholders.

Fabrika vagona a.d. Kraljevo

Agencija za privatizaciju Republike Srbije Beograd prestala sa radom 29.01.2016.

Azov impex

Commercial Court of Appeal

Fabrika vagona Kraljevo

Railway Car Factory