Turkey-based Palmali, one of the biggest shippers in the Caspian region, said on Monday it had lodged a claim with the English High Court worth almost $2 billion against Litasco, the trading arm of Russian oil producer Lukoil, Reuters reported.
"The claim concerns an alleged failure by Litasco S.A. to provide contractual quantities of cargo under a long-term contract between the companies," Palmali said in a statement sent to Reuters.
Palmali, controlled by Azerbaijan-born businessman Mubariz Mansimov, said the case involved "breach of contract amounting to just under $2 billion plus interest and costs." It did not give further details about the contract. Lukoil declined to make any immediate comment, the report said.
Lukoil has been considering selling its Swiss unit Litasco because new U.S. sanctions on Russia that will make it harder for the Geneva-based energy trader to raise new funds, it added.
Mubariz Mansimov and the Turkish President Recep Tayyip Erdoğan's family formed a business relationship over many years. Mansimov's empire controls around two-thirds of the oil trade in the Black Sea region. The billionaire is considered well-connected. He is a friend of U.S. President Donald Trump and was present at his inauguration in Washington DC in January this year.
