INTEGRITES succeeds in LCIA arbitration in favour of a global steel and mining industry leader

12.11.2024

INTEGRITES has successfully protected interests of the client, the Ukrainian branch of one of the world’s leading steel and mining groups, as respondent in a London-seated LCIA arbitration. The dispute concerned the-payment for coal products of Russian origin delivered to the client by a Cypriot company prior to the full-scale Russian invasion of Ukraine and respective assignment agreement to the new creditor.

Our team acted as a lead counsel in LCIA arbitration – during the jurisdictional stage, where we challenged the jurisdiction of the Arbitral Tribunal, among others, in connection with the assignment agreement and absence of the arbitration agreement between the claimant and the client. 

On 10 October 2024, the Tribunal has agreed with INTEGRITES’s arguments and ruled that it does not have jurisdiction as the firm’s client, the Ukrainian company, had not provided consent to the assignment from the original creditor, which is connected to the sanctioned entities, to the new creditor. Assignment of rights under the contract without written consent of the client was not permitted, hence, such assignment was invalid.

The matter was complicated by the significant limitations imposed by the Ukrainian, EU and UK sanctions, anti-money laundering laws and banking regulations, as well as potential Ukrainian criminal law liability for providing the abovementioned consent.

Led by Partner and head of International Arbitration Olena Perepelynska, the project team included Senior Associate Nadiya Mykiyevych, Associate Anna Kozyrieva and Paralegal Ivan Manziuk.