RICHMOND, B.C. – MacDonald, Dettwiler and Associates Ltd. (TSX: MDA) says it has suspended work on ground infrastructure for its communication satellite program in Ukraine due to the country’s political instability.
The global communications and information company says the force majeure has been accepted by its Ukrainian client.
A force majeure is a common clause in business contracts that allows work to be stopped without fault in extraordinary circumstances, including a strike, war or criminal activities.
MDA says it is working with the client to determine “go-forward scenarios with the goal to minimize the impact.” It expects the work to be delayed from four to six months, but the final costs associated with the stoppage is yet to be determined.
Tensions have been building after Russia annexed Crimea from Ukraine in March.
MDA provides space technology as well as satellite data and surveillance information and systems to commercial and government organizations around the world.