Ilyashev & Partners Obtains Freezing Order against Debtor’s Bank Accounts in Favor of Romanian Trader

Ilyashev & Partners Law Firm successfully represented a Romanian oil trading company in a court claim for debt recovery against a Ukrainian counterparty, obtaining a pre-arbitration freezing order against the debtor’s bank accounts as interim relief before initiating proceedings before an international arbitral tribunal.

The dispute between the Romanian trader and the Ukrainian company arose from the Ukrainian company’s improper performance of its obligations under a framework sales agreement for polyethylene granules. The Ukrainian buyer took delivery of goods valued at over EUR 152,000 but failed to settle. Subsequently, the supplier issued a formal notice of claim to the counterparty, which remained unfulfilled.

As the contract stipulated dispute resolution under the rules of the Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania, the supplier sought to secure the enforcement of any future arbitral award in Ukraine in advance by retaining Ilyashev & Partners.

Marina Riashchenko, Attorney, Counsel at Ilyashev & Partners, secured irrefutable evidence demonstrating that the defendant had physically received the goods while withholding funds, thereby creating a real risk of non-enforcement of a future award. Furthermore, referencing martial law does not relieve a party from fulfilling contractual obligations entered into during its operation.

The Court concurred with the legal position presented by Ilyashev & Partners’ Counsel and ruled in favor of the Romanian company, issuing a freezing order against the Ukrainian debtor’s bank accounts up to the full claim amount of EUR 190,000, which includes the principal debt, penalties, arbitration fees, and legal costs.

“Interim measures granted before the commencement of arbitration are paramount to safeguarding the rights of foreign investors in Ukraine, as the swift application of protective remedies mitigates the risk of asset dissipation before the case is heard on the merits. This matter demonstrates the readiness of Ukrainian courts to apply modern standards of proof and protect the rights of foreign counterparties, reinforcing that martial law provides no ground for the unjustifiable withholding of contract payments,” stated Marina Riashchenko.

The project was handled by Marina Riashchenko, Attorney at Law, Counsel at Ilyashev & Partners Law Firm.