17:34 26.07.2018

Cabinet approves issue of $1 mln to State Space Agency to pay for arbitration with Canadian MDA over Lybid project

2 min read
Cabinet approves issue of $1 mln to State Space Agency to pay for arbitration with Canadian MDA over Lybid project

The government of Ukraine has approved the issue of UAH 28 million (about $1 million) from the reserve fund of the national budget to the State Space Agency to pay the costs of Ukrkosmos state enterprise for a judicial settlement in the London Court of International Arbitration of a dispute with Canadian MDA within the project of creating and launching a satellite of the national satellite communication system Lybid.

The draft cabinet resolution, prepared by the Ukrainian space agency, was approved at a government meeting without discussion.

In accordance with the order, funds are allocated from the reserve fund on a return basis and must be returned to the national budget before December 25, 2027.

The State Space Agency must submit a report on the use of funds to the Ministry of Economic Development and Trade, the Ministry of Finance and the State Treasury Service by December 25 of the current year.

According to an explanatory note to the draft document available to Interfax-Ukraine, on February 26, 2018 Ukrkosmos filed a lawsuit to the London Court of International Arbitration against Canadian MDA in connection with the unreasonable attempt of the Canadian company to unilaterally break the contract, signed in 2010, for the creation and launch of the satellite of the national satellite communication system Lybid. The litigation of the dispute with MDA in the London Court of International Arbitration is stipulated by the terms of the contract. The Ukrainian side requires MDA to return more than $224 million transferred to it from the national budget for the project implementation.

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