Swedish truck manufacturer Scania won an appeal in a $4.5 million (Hr 123 million) lawsuit filed by its former partner and local truck part dealer Zhuravlyna, Scania announced on June 24.
Zhuravlyna accused Scania of being responsible for lost profits after the Swedish manufacturer stopped working with the Ukrainian company in 2017.
Zhuravlyna, a truck dealer located in Rivne, a city located 350 kilometers west of Kyiv, operated a service center for Scania, buying spare parts from the Swedish company at a discount price to install them on 16-ton Scalia trucks.
Scania terminated its contract because Zhuravlyna was using counterfeit spare parts for the truck repair, putting the company’s clients at risk.
In response, Zhuravlyna filed several lawsuits against Scania in 2019, overall worth $4.5 million (Hr 123 million) in lost profits and fictitious debt for the period from 2012 to 2017, a claim Scania regarded as “groundless.”
Hakan Jyde, the CEO of Scania, praised the court’s decision in the company’s press release.
“Thanks to this considered decision, Ukraine can restore its investment reputation, and we can unblock further investments in the country,” Jyde wrote.
Scania, which is part of the Volkswagen Group, is a leading truck manufacturer in Ukraine and accounts for 27% of Western manufacturers of heavy equipment on the Ukrainian market.
Scania paid over 97 million euros in taxes to the Ukrainian budget and has invested more than 38 million euros in service stations, new jobs, equipment and staff training since 1998, when the company began operating in the country.
