Russia flexes its legal muscles against Canadian uranium company
Russia blocks litigation claim against ARMZ – Khan, TORONTO (miningweekly.com) – By: Liezel Hill 7th February 2011 Russian authorities have blocked a litigation claim by Canadian junior Khan Resources against Russian State-owned uranium miner Atomredmetzoloto (ARMZ), the TSX-listed company said on Monday.Khan filed a statement of claim against ARMZ and its subsidiary JSC Priargunsky with the Ontario Superior Court of Justice, alleging that ARMZ interfered with its uranium interests in Mongolia, and is seeking damages of C$300-million.
Because ARMZ is a government-owned company, the service of claim must go through the Russian Ministry of Justice. The statement of claim was translated into Russian and presented to the Ministry on October 28, Khan said.“The Russian Ministry of Justice has notified Khan that it refuses to effect service on ARMZ, citing Article 13 of the Hague Convention,” the firm reported on Monday.
The article states that “the State addressed may refuse to comply therewith only if it deems that compliance would infringe its sovereignty or security.”
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