AGA Partners successfully represented a Swiss trading company in an arbitration arising from the contract for 6,200 tonnes of Ukrainian corn. Following a partial payment of USD 450,000.00, the sellers declared the client in default and unlawfully retained an advance payment in the sum of USD 161,766.00, alleging demurrage, legal costs, and other damages. 

The client challenged the sellers’ retention of funds in the arbitration proceedings under GAFTA Arbitration Rules No. 125. The tribunal found the sellers’ retention of funds partially unjustified and the sellers’ damages claims inflated. Ultimately, the tribunal ordered the sellers to return withheld funds to the client immediately and awarded interest at 5.5% per annum until the date of payment. 

The AGA Partners team included partner Ivan Kasyniuk, counsel Pavlo Lebediev and associate Tetiana Osypenko.