The dispute arose out of a FOB contract under which the buyer was to tender barges at the Ukrainian port of Reni. In accordance with the terms of the contract, the buyer nominated the barges and provided the necessary information for their acceptance at the port. However, a few days later, the buyer refused to accept the goods and cancelled the nomination of the barges.

Despite the client's repeated requests to withdraw the cancellation of the nomination and proceed with the execution of the contract, the buyer continued to refuse to tender the barges at the port of loading. Due to the complete lack of cooperation, the client was forced to terminate the contract with the buyer and initiated arbitration proceedings against it in London.

The main issue in the arbitration was the date of the buyer's breach of contract, as of which damages had to be calculated. The debate was between two positions: the date of cancellation of the barges' nomination and the end of the delivery period.

After exchanging written explanations, the Tribunal upheld the client's claim and awarded damages in the amount of approximately USD 84,000 with interest on this amount.

In its decision, the Tribunal found that the damages should be calculated based on the market price as of the date when the buyer missed the contractual period for nominating the barges. Accordingly, the client's damages in the form of the difference in the price of the goods should be calculated as of the last possible date when the buyer could have nominated the barges.

AGA Partners' team was represented by partner Ivan Kasynyuk, counsel Pavlo Lebediev and associate Vladyslav Kapustynskyi.