Vorex blocks UGV’s procurements of seamless casing pipes

On April 11, 2024, Vorex LLC filed a lawsuit with the Commercial Court of Kyiv City against Ukrgasvydobuvannya JSC (UGV) to invalidate the tenders for the purchase of seamless casing pipes with a length totaling 232.9 km.

As a reminder, in January 2024, UGV announced 4 tenders for the purchase of seamless casing pipes on Prozorro for a total value of UAH 1.39 billion (including VAT). Three companies took part in the tenders: Naftoservice LLC with bids totaling UAH 1.352 billion, Vorex – UAH 1.155 billion, and Interpipe Ukraine LLC – UAH 1.153 billion, the last of which won the tenders and as of now, is awaiting the signing of contracts with UGV.

Disagreeing with UGV’s decision, Vorex filed a complaint with the Antimonopoly Committee of Ukraine (AMCU) in late January 2024 regarding the conditions of the tenders for the purchase of pipes. According to Vorex, the tender requirements were discriminatory towards foreign companies. However, in early February 2024, AMCU dismissed Vorex’s complaint due to the lack of evidence that foreign companies could not fulfill the terms and conditions set out in the tender documents.

However, in April 2024, Vorex LLC filed a lawsuit against UGV with the Commercial Court. Besides, Vorex LLC applied for injunctive relief by prohibiting UGV and its branches from signing contracts for the ordered seamless casing pipes.

On April 12, 2024, UGV filed an objection to the court against the measures (driven by Vorex) to prohibit it from signing contracts.

On April 16, 2024, the Commercial Court accepted the statement of claim and scheduled a preparatory hearing for May 20, 2024. The Court also ruled to prohibit UGV and its branches from signing contracts for the ordered pipes until the dispute is resolved and the Court’s decision enters into force.

Thus, Ukrgasvydobuvannya cannot sign contracts for the supply of seamless casing pipes with Interpipe Ukraine, which is putting at risk the company's plans to increase its production.