Successful Protection of Uкrolia’s Interests in Dispute with ViOil in International Arbitration

SVP successfully defended Ukroliya Company’s interests in a dispute against the ViOil group of companies. The case was heard by the International Commercial Arbitration Court at the Chamber of Commerce and Industry of Ukraine.

 

The dispute arose when Uкrolia supplied high-oleic oil valued at $2 million to a non-resident company in the ViOil group in 2021. Under the agreement with the buyer, Uкrolia expected that the goods would be exported outside Ukraine’s customs territory, allowing them to pay VAT at a zero rate. However, the buyer failed to fulfill their obligations, arguing that the contract did not explicitly require them to export the goods. This unfair behavior by the buyer forced Uкrolia to pay VAT at the full rate.

 

Our firm’s team analyzed the contract terms and relevant trade customs, successfully demonstrating to the arbitrator that the buyer had an obligation to export the goods.

 

As a result, the International Commercial Arbitration Court fully upheld Uкrolia’s claim and awarded damages equal to the VAT paid.