The dispute arose out of two contracts for the sale of 2,200 metric tons (in total) of sunflower seed oil. While the seller duly delivered the goods, the buyer opted not to pay their full value, arguing the inability to make payments under the contracts due to the alleged banking system issues.  

During the arbitration proceedings, the parties exchanged four rounds of written submissions, during which the buyer attempted to evade liability by all means. In particular, the buyer sought to initiate criminal proceedings against the seller in Spain while simultaneously demanding that the Tribunal recognize the claims as stayed on the same grounds. 

Nevertheless, due to the diligent and coordinated endeavors of AGA Partners, the seller's claims were satisfied, and the Tribunal awarded EUR 2.8 million in favor of the seller, alongside interest at a rate of 5% and legal and arbitration expenses. 

In its award, the Tribunal admitted that buyers bear all risks associated with resolving banking issues and compliance when making payment for the delivered goods.  

And no less importantly, the Tribunal also acknowledged that criminal proceedings, which may be related to the subject matter of the arbitration dispute, cannot serve as grounds for staying the arbitration proceedings, as the latter is confined to determining commercial issues, not criminality. 

The AGA Partners’ team was represented by Partner Iryna Moroz and Associate Oleksandr Zub.