Hillmont Partners wins EUR 3 million ICC award for a Ukrainian company against defaulting European supplier

Hillmont Partners has secured a complete victory for a Ukrainian company in ICC arbitration seated in Vienna, recovering more than EUR 3 million arising from a major cross-border supply dispute.

The dispute arose after the supplier received an advance payment from a Ukrainian company in the amount of nearly EUR 2.7 million. The supplier failed to fulfil its contractual obligations, breached the contract and refused to return a single euro of the prepayment. In an attempt to avoid liability, the supplier relied on force majeure arguments and alleged disruptions within its supply chain.

The Sole Arbitrator rejected that defence in full. Accepting Hillmont Partners’ position, he confirmed that supply chain disruptions constitute a commercial risk that remains the supplier’s responsibility and cannot serve as a justification for non-performance of contractual obligations.

The Sole Arbitrator concluded that the impediments arising from default of the supplier’s counterparty’s non-performance fall outside Article 79(2) of the UN Convention on Contracts for the International Sale of Goods (CISG). Even if they were to be assessed under it, the supplier had not satisfied the twofold burden it imposes and was therefore not exempt from liability. 

The award orders the supplier to pay our client more than EUR 3 million in total, comprising restitution of the full advance payment, the contractual penalty, statutory interest continuing to accrue until payment, and reimbursement of the client’s legal and arbitration costs in full.

The result reflects Hillmont Partners’ strength in high-value international arbitration and our commitment to securing decisive outcomes for Ukrainian businesses facing default by foreign counterparties.