The arbitration proceedings between the Haas Formula One team and former title sponsor Uralkali have concluded after a ruling was issued.
Confirmed:
Haas had ‘just cause’ to terminate contract early due to the Russian invasion of Ukraine
The panel denied Uralkali’s claims for breach of contract
No compensation is owed to the Russian firm, but Haas must refund the majority of the US$13 million sponsorship
The tumultuous ending to this title sponsorship saw Uralkali demand a US$13 million refund and US$8.6 million in compensation. In response, Haas alleged they were owed €8 million (US$8.5 million). Ultimately, neither side were successful with their claims.
The panel ruled that the title sponsorship was active until the date of termination – 4th March 2022 – so Haas are allowed to retain a portion of the fee for the period before this. The remaining balance for the 2022 season must be returned to Uralkali, but without the compensation it sought.
A Haas statement read: ‘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”.’
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