Court rules in favor of Haas in dispute with former sponsor Uralkali
Haas wins its dispute with Uralkali before the Swiss arbitration court after the American team terminated their sponsorship agreement at the start of Russia's war in Ukraine.
The Swiss arbitration tribunal has ruled in favor of the Formula 1 team Haas in its dispute with Uralkali, concerning Haas’s decision to terminate their sponsorship agreement following the invasion of Ukraine by Russia in 2022.
Uralkali, the main sponsor of the Haas team, had claimed a refund of 13 million dollars after Haas fired its driver Nikita Mazepin, son of the Uralkali boss, and ended their partnership in March 2022. Uralkali believed that Haas had violated the contract by terminating the agreement before the first race of the season.
Haas defended himself by invoking a just cause to terminate the contract following the invasion of Ukraine by Russia and the association of Uralkali with this country.
The arbitral tribunal ruled in favor of Haas.
The court ruled that Haas had indeed just cause to terminate the sponsorship contract and rejected Uralkali’s requests for contract termination. It also emphasized that many other sports organizations had severed ties with Russian companies after the invasion of Ukraine, and that Haas could be the last non-Russian sports team to continue with a Russian sponsor.
Haas will be able to keep the portion of the sponsorship fees covering the period until March 4, 2022, when the contract was terminated. They will have to reimburse the remaining $13 million to Uralkali, but will not have to pay any additional compensation.
