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Integrites Successful for Ukraine's Ukrkhimtransamiak in Arbitration Against Russia's Togliattiazot

Integrites Successful for Ukraine's Ukrkhimtransamiak in Arbitration Against Russia's Togliattiazot

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Integrites has successfully represented the interests of the Ukrainian state enterprise Ukrkhimtransamiak, an ammonia pipeline operator, in arbitration proceedings against Russian chemical giant Togliattiazot worth over USD 190 million.

According to Integrites, "the case, stemming from a long-term contract for ammonia transit through the territory of Ukraine, was referred to arbitration under the Rules of the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry in 2017. [Ukrkhimtransamiak] initiated these arbitral proceedings, while Togliattiazot filed several cross-claims. Both parties sought revision of the contractual tariff for ammonia transit through the Ukrainian part of the “Togliatti-Odessa” pipeline.

"The negative outcome of the dispute could have affected the global ammonia market," Integrites explained, "because the ammonia pipeline has no market equivalent and remains the major means of transportation of ammonia produced and exported by Togliattiazot (i.e. about 11% of global ammonia exports)."

The firm reports that it "secured an unprecedented award revising the transit tariff sought by its client [and] also helped the client defeat all cross-claims with economic effect exceeding USD 180 million."

The Integrites team was supervised by Partner Olena Perepelynska and included Senior Associate Krystyna Khripkova and Associate Anastasiia Iliashenko. 

“The case proved to be challenging and requiring analysis and application of not only the Civil and Commercial Codes of Ukraine," commented Perepelynska, "but of many provisions of the Tax Code of Ukraine, CIS customs convention, Ukraine-EU Association Agreement, The General Agreement on Tariffs and Trade (GATT), Vienna Convention on the Law of Treaties and many other Ukrainian laws and international treaties. Both the nature and complexity of the case make it unique among those considered by the ICAC."

Integrites at a Glance

INTEGRITES is a full-service law firm with the head office in Ukraine, offices in Kazakhstan and Russia, and representative offices in Germany, the Netherlands, and the UK.

We provide legal services to companies seeking comprehensive advice on large deals and major disputes, as well as day-to-day operation. INTEGRITES is highly recommended for its cross-border work (whether sophisticated transactions or complex dispute resolution) and for the projects in energy, in particular, renewable.

Our mission is to help companies concentrate on development of their business while we take care of the legal issues. With profound industry-focused expertise, we deliver legal solutions that add value to the business of our clients and help them successfully handle legal challenges.

In 14 years INTEGRITES has served more than 850 clients from around the globe, including Fortune 500 companies and international financial institutions. Clients in our portfolio are recognized leaders in various industries: from manufacturing, pharmaceuticals, and retail to agriculture, logistics, and renewables. Currently 80% of the companies we serve are international.

INTEGRITES has been consistently recognized by the leading international legal directories and rankings: Chambers Global/Europe, The Legal 500 EMEA, Who’s Who Legal, IFLR 1000, Best Lawyers, FT Innovative Lawyers.

All News about, and Legal Analysis by, Integrites can be found here.

Firm's website: www.integrites.com