F1: Uralkali sues Haas team to refund their 2022 money and wins (3rd Update)

In a statement issued on Tuesday, Uralkali claims that the court deadline for the payment of the remaining sponsorship money, plus delivery of the car, had now passed without any action from Haas.

“Regretfully, neither the money (plus interest plus costs) has been paid, nor the race car delivered by the required deadline.

“A letter sent by Uralkali to Haas in early July providing options for the delivery of the race car to take place went unanswered. Further interest on the awarded sum continues to accrue.”

A Uralkali representative was quoted as saying: “Haas’ failure to execute the required transfers is a flagrant violation of the tribunal’s award as determined by an arbitration process signed on to by both sides.

“This gives new meaning to the expression ‘unsportsmanlike conduct.’ Uralkali will use all means provided for under the law to see that the ruling is implemented.

“Let all current and potential Haas sponsors be aware of the kind of treatment that may await them.”

A full team statement from Haas read: “Haas Formula LLC, the owner of the Haas F1 Team, announced the completion of its arbitration proceeding with PJSC Uralkali, its former title sponsor. The arbitration panel ruled that Haas had “just cause” to terminate its sponsorship contract with Uralkali, and denied Uralkali’s claims for breach of contract.

“Haas terminated its agreement with Uralkali on March 4, 2022, shortly after Russian military forces invaded Ukraine.

“The arbitration panel ruled that, in light of all the facts relating to the parties’ relationship, including Uralkali’s association with Russia, Haas “could not be expected to continue the Sponsorship Agreement under such circumstances,” and concluded that “the Arbitral Tribunal finds that Haas had a just cause to terminate the Sponsorship Agreement.”’

“The panel emphasized that multiple other sports organizations severed their ties with Russian companies immediately after the invasion of Ukraine, and thus there was a risk “that Haas could rapidly be the last non-Russian sport team continuing with a Russian name sponsor.”’

“Accordingly, the panel ruled that the sponsorship was effectively terminated on the date of Haas’s notice of termination, and ordered that Haas retain the portion of the sponsorship fee for the period before the termination, and refund any balance to Uralkali.”

Uralkali, one of the world’s leading potash producers, announced that the arbitral tribunal under the Swiss rules of international arbitration has ruled on the dispute between the Company and the Haas F1 Team regarding the termination of its sponsorship agreement with Uralkali.

Following a detailed examination of the case, the tribunal found that Haas was in violation of the contract and obliged the Team to pay compensation to Uralkali. The tribunal also rejected all of the Team’s counterclaims toward the Company.

Related Article: F1: Haas steals $13 million from Uralkali

The arbitral award puts an end to the dispute between Uralkali and Haas regarding the sponsorship agreement.

As a key player in ensuring global food security, as well as a company that has shown support for social projects over the course of many years, including sports related programs in Russia and internationally, Uralkali welcomes the decision by the tribunal.

The Company anticipates that the team will fulfil its obligations under the ruling without undue delay. The funds, once received, are intended for the development and modernization of the Company’s production facilities.

Uralkali has released a statement in reaction to the termination of its contract with Haas and will aim to claim back its full 2022 sponsorship funding from the team. If successful, Uralkali states it will use sponsorship money to establish a “We Compete As One athlete support foundation”.

“Uralkali intends to protect its interests in line with applicable legal procedures and reserves its rights to initiate judicial proceedings, claim damages and seek repayment of the significant amounts Uralkali had paid for the 2022 Formula 1 season,” the Uralkali statement read.

“As most of the sponsorship funding for the 2022 season has already been transferred to Haas and given that the team terminated the sponsorship agreement before the first race of the 2022 season, Haas has thus failed to perform its obligations to Uralkali for this year’s season.

“Uralkali shall request the immediate reimbursement of the amounts received by Haas.”