News date: 3 September 2026
Ilyashev & Partners Law Firm successfully represented a Ukrainian agricultural producer in international arbitration under the auspices of the Grain and Feed Trade Association (GAFTA) in a breach of contract dispute against a Polish buyer. The dispute was governed by English law, with the seat of arbitration in London.
The dispute arose out of a contract for the supply of 40,000 metric tonnes of corn on FCA (Free Carrier) terms. The claim concerned the recovery of debt for the consignments of goods actually delivered to and accepted by the buyer. In response, the Polish buyer disputed the debt and filed counterclaims seeking damages of approximately USD 1.6 million, citing an alleged breach by the seller of its obligation to deliver the entire contracted quantity of corn. The buyer also advanced legal theories concerning economic duress during the execution of addenda and an alleged lack of jurisdiction of the GAFTA tribunal based on non-compliance with arbitration commencement procedures under the applicable 1996 Arbitration Act and GAFTA Arbitration Rules No. 125.
As a result of successful case management by Ilyashev & Partners’ International Arbitration Team, the Ukrainian company managed not only to recover the full cost of the delivered products and obtain interest on the outstanding debt accruing until full repayment, but also to secure full protection against the foreign counterparty’s unfounded financial claims.
The Arbitral Tribunal agreed with the arguments presented by the Ilyashev & Partners’ International Arbitration Team, confirming that under FCA terms, the obligation to provide and nominate transport vehicles rests solely on the buyer. Since the buyer failed to provide transport for the delivery of the remaining goods, the seller could not be deemed to have breached its delivery obligations. Furthermore, the Tribunal confirmed the application of the GAFTA rule stipulating that each delivery shall be treated as a separate contract, making the unjustifiable withholding of payment for goods already delivered impermissible.
On 26 August 2026, the GAFTA Arbitral Tribunal rendered an award fully satisfying the claims of the Ukrainian agricultural producer for the recovery of the principal debt of USD 681 thousand for the delivered goods, and awarded interest at a rate of 5% per annum, compounded quarterly from 6 February 2025 until full payment.
In addition, the Tribunal ordered the respondent to reimburse all costs of the arbitration proceedings. The buyer’s counterclaim for approximately USD 1.6 million was dismissed in its entirety.
The case was handled by Roman Protsyshyn, MCIArb, Attorney at Law, Counsel at Ilyashev & Partners Law Firm, and Kateryna Solodovnyk, Lawyer.