Nizhny Novgorod court allowed Korean Posco to recover debt from Orinnox
The court rejected the objections of Orinnox about the transfer of the right of claim to the Korean Corporation K-SURE and violation of currency restrictions, pointing out that the dispute is related to non-payment of delivered goods, not credit obligations
The arbitration court of the Nizhny Novgorod region recognized and allowed to execute in Russia the decision of the Shanghai International Arbitration Center to recover $267.4 thousand (about 22.25 million rubles) from Orinnox LLC in favor of the South Korean Posco International Corporation, follows from the court ruling.
In addition to the principal debt, the Russian company was decided to collect interest for delay at a rate of 6% per annum, accrued from March to May 2022 until the full repayment of the debt, as well as an arbitration fee of 74,018 yuan (about 923 thousand rubles) and 133.9 thousand rubles. court costs.
POSCO International Corporation is a South Korean international commercial and industrial company, part of the POSCO Group. Founded in 1967, its headquarters are in Seoul.
The main areas of activity are international trade, energy, development of natural gas fields, production and supply of liquefied natural gas (LNG), trade in steel, raw materials and grain, as well as the production of automotive components and battery materials.
The Shanghai International Arbitration Center issued a decision on debt recovery on August 22, 2025 in a dispute related to eight contracts. Posco International appealed to a Russian court after Orinnox failed to comply voluntarily.
The Russian company objected to the recognition of the arbitration award. In particular, she referred to the possible transfer of the right of claim to the Korean Trade Insurance Corporation (K-SURE) by way of subrogation, as well as the contradiction of the execution of the decision to the Russian legislation on currency control and anti-sanctions measures.
Subrogation (from Latin subrogatio – “replacement”) is the transfer of the right of claim for damages from the injured party (creditor) to the person who compensated these losses for the debtor.
The court dismissed those arguments. He pointed out that K-SURE had not participated in the arbitration proceedings and had not made an independent claim for debt collection. In addition, the dispute concerned the payment of the delivered goods, and not credit or loan obligations, which are subject to a special procedure for settlements under Presidential Decree No. 95.
The court also found that Orinnox had been duly notified of the arbitration proceedings and there were no grounds for refusing to enforce the foreign award.
The decision can be appealed to the Arbitration Court of the Volga-Vyatka District within a month.
Orinnox LLC is a Russian company operating in the stainless metal market since 1999. It specializes in stainless steel supplies, including pipes, sheet and grade rolls, rolls and strips. The company's warehouses are located in Moscow and Nizhny Novgorod. Legally registered in Nizhny Novgorod in 2007.
