Sayenko Kharenko successfully represented MHP Food Trading LLC, UAE based subsidiary of MHP Group, a leading international food, agro & tech company with headquarters in Ukraine (MHP), as a seller, in arbitration proceedings under the FOSFA Rules of Arbitration and Appeal against a buyer based in Hong Kong.
The dispute arose under the English law governed FOSFA Model Contract No. 56 on supply of sunflower oil by MHP. Since the buyer failed to make the contractually agreed advance payments for the sunflower oil, MHP could not supply the commodity to the buyer and was forced to resale it to a third party with a significant discount.
The resulting FOSFA claim against the buyer concerned the damages caused to MHP by the buyer’s breach of the contract. Ensuing arbitration proceedings conducted by the arbitral tribunal of three arbitrators involved multiple submissions by each party on the points of facts and law. The tribunal accepted the position of MHP and awarded it almost USD 1 million, including damages, compound interest and arbitration costs.
Sayenko Kharenko team was led by partner Olexander Droug and included senior associate Andriy Stetsenko and associates Yuliia Pavlova and Vladyslav Bandrovsky.