UKROLIYA

Defending interests in international arbitration over the export of high-oleic oil

Our Client

Ukroliya is the largest producer and exporter of organic oil in Ukraine.

Challenge

In 2021, the company delivered goods to a seaport for a non-resident buyer within the ViOil group, with a total value of USD 2 million.

Our client reasonably expected that the goods would be exported outside Ukraine’s customs territory, which would have allowed the application of a zero VAT rate. However, the buyer failed to fulfill this obligation, arguing that the contract did not explicitly require export of the goods.

As a result, Ukroliya was compelled to pay VAT at the full rate.

Client Outcomes

After carefully analyzing and interpreting the contract terms and examining established trade practices, the SVP team successfully demonstrated and convinced the arbitrator that the buyer was responsible for exporting the goods.

As a result, in April 2025, the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry fully upheld our client’s claim and awarded compensation equal to the VAT paid. In October 2025, the Kyiv Court of Appeal confirmed the validity of this decision.

SVP is also managing the enforcement of the award abroad. The Court of Cyprus has frozen all assets belonging to the non-resident company within the ViOil group.

The Next Project

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