Uralkali claims Swiss court ruling in its favour for the sponsorship money owed from Haas after their deal ended on a sour note.
The case revolves around Uralkali pressing for a refund of $13 million from Haas after termination of its sponsorship agreement by the American F1 team just at the onset of the 2022 season, when Russian military invaded Ukraine.
At that time, Haas not just ended ties with Urakali but also Nikita Mazepin, who brought significant sponsorship from the company owned by his father. The Russian company pressed to the Swiss arbitration court to solve the dispute.
As per Uralkali, the court has ruled in its favour and hopes that the American outfit will repay the money back to them without any delay. The F1 team, meanwhile, notes that the court agreed that the outfit had a just cause to terminate the sponsorship.
And so, it is likely that the F1 team will not have to pay any compensation to Uralkali but will have to refund whatever balance amount that comes up of the $13 million after retaining portion of sponsorship money used up until March 4, 2022.
Uralkali –
Uralkali, one of the world’s leading potash producers, announces that the arbitral tribunal under the Swiss rules of international arbitration has ruled on the dispute between the Company and the Haas F1 Team regarding the termination of its sponsorship agreement with Uralkali. Following a detailed examination of the case, the tribunal found that Haas was in violation of the contract and obliged the Team to pay compensation to Uralkali. The tribunal also rejected all of the Team’s counterclaims toward the Company.
The arbitral award puts an end to the dispute between Uralkali and Haas regarding the sponsorship agreement. As a key player in ensuring global food security, as well as a company that has shown support for social projects over the course of many years, including sports related programs in Russia and internationally, Uralkali welcomes the decision by the tribunal.
The Company anticipates that Haas will fulfil its obligations under the ruling without undue delay. The funds, once received, are intended for the development and modernisation of the Company’s production facilities.
Haas –
Haas Formula LLC, the owner of the Haas F1 Team, announced the completion of its arbitration proceeding with PJSC Uralkali, its former title sponsor. The arbitration panel ruled that Haas had “just cause” to terminate its sponsorship contract with Uralkali, and denied Uralkali’s claims for breach of contract. Haas terminated its agreement with Uralkali on March 4, 2022, shortly after Russian military forces invaded Ukraine.
The arbitration panel ruled that, in light of all the facts relating to the parties’ relationship, including Uralkali’s association with Russia, Haas “could not be expected to continue the Sponsorship Agreement under such circumstances,” and concluded that “the Arbitral Tribunal finds that Haas had a just cause to terminate the Sponsorship Agreement.”
The panel emphasized that multiple other sports organizations severed their ties with Russian companies immediately after the invasion of Ukraine, and thus there was a risk “that Haas could rapidly be the last non-Russian sport team continuing with a Russian name sponsor.”
Accordingly, the panel ruled that the sponsorship was effectively terminated on the date of Haas’s notice of termination, and ordered that Haas retain the portion of the sponsorship fee for the period before the termination, and refund any balance to Uralkali.
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