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."