The AGA Partners team secured another significant victory for its Client (Seller) in international commercial arbitration in London, arising from a series of contracts for the supply of approximately 25,000 MT of Ukrainian crude sunflower oil to a Turkish buyer.

Following the 2023 earthquake in Türkiye, the Buyer refused to perform four contracts, citing damage to its production facilities and inability to continue operations. The Seller rejected these arguments and treated the Buyer’s conduct as anticipatory breach, maintaining that such circumstances did not affect the Buyer’s obligation to pay under the contracts.

During the arbitration, AGA Partners’ team successfully demonstrated that events in the country of destination do not excuse non-performance under CIF contracts, reaffirming the principle of “payment against documents”. The Tribunal also clarified key aspects of anticipatory breach and mitigation and confirmed that contractual notices remain effective if properly sent, even if not actually read.

As a result, the Tribunal issued an award in favour of AGA Partners’ Client, ordering the Buyer to pay more than USD 7 million in damages, together with interest and recovery of arbitration and legal costs.

AGA Partners experts emphasize that this case not only reaffirms the strict nature of CIF obligations but also illustrates how decisive and timely action in response to anticipatory breach can be critical in protecting commercial interests in a volatile market.

This arbitration victory was achieved through the efforts of Partner AGA Partners  Iryna Moroz, Senior Associate AGA Partners  Ievgen Boiarskyi, and Associate AGA Partners Andrii Tantsiura.