INTEGRITES prevented annulment of the arbitral award in favour of “Ukrkhimtransamiak” in the dispute against “Togliattiazot”


INTEGRITES successfully represented interests of the Ukrainian state-owned enterprise “Ukrkhimtransamiak”, one of the world major operators of ammonia pipeline, in the court proceedings on setting aside of the arbitral award rendered by the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC). Pursuant to the award, the arbitral tribunal changed the tariff for the transit of ammonia through the territory of Ukraine, set in a long-term contract with the Russian chemical giant “Togliattiazot”.

Last year INTEGRITES International Arbitration team secured an unprecedented arbitral award revising the transit tariff sought by its client. The team also helped the client to prevail in all cross-claims with economic effect exceeding USD 180 mln.

In late 2019, PJSC “Togliattiazot” applied to the Ukrainian courts to set aside the ICAC award.  INTEGRITES team persuaded the Kyiv Court of Appeal that there were no grounds for setting the ICAC award aside. Pursuant to the ruling dated 2 March 2020, the application of “Togliattiazot” was dismissed by the Kyiv Court of Appeal. On 3 September 2020, the Supreme Court upheld the ruling of the Kyiv Court of Appeal and dismissed the appeal of “Togliattiazot”.

Supervised by partner and Head of International Arbitration Olena Perepelynska, the project team included senior associate Krystyna Khripkova and associate Anastasiia Iliashenko.

“The tariff dispute between the Ukrainian SOE “Ukrkhimtransamiak” and the Russian PJSC “Togliattiazot”, eventually put an end to by the Supreme Court, lasted from late 2016. Both arbitration and court stages of the dispute were unique and complex. Our team managed to refute all the arguments of the opponent to set the arbitral award aside: ranging from the alleged breach of the arbitration agreement to the alleged violation of the public policy of Ukraine. The Ukrainian courts upheld our position and established that there had been no grounds for setting aside the ICAC award. Ultimately, since March 2019, the new tariff established by the ICAC award shall apply to the relevant services under the contract”, – INTEGRITES partner Olena Perepelynska commented.