Haas release fresh statement as arbitration ruling ends $13million Uralkali dispute

Nikita Mazepin in a Haas coat. Barcelona February 2022.

A long-standing dispute between Haas and former title sponsor Uralkali has been settled following an arbitration ruling from a Swiss court.

Uralkali, one of the world’s largest producers of potash, became a title sponsor of the Haas F1 team in 2021 as part of the deal to bring Nikita Mazepin to the team alongside Mick Schumacher.

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However, following Russia’s military invasion of Ukraine in early 2022, Haas cut all ties with Mazepin family with immediate effect; Nikita was dismissed from his F1 seat and Uralkali, whose former chairman was Nikita’s father, Dmitry, was removed as Haas title sponsor.

Ever since, the two parties have been in dispute over the split, with Uralkali seeking refund on the $13million fee they paid Haas to cover the entirety of the F1 2022 season.

On Thursday, Uralkali claimed victory in the dispute with Haas, saying “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.

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

But, in the lead-up to the Spanish Grand Prix, a team statement from Haas has now shed further light on the arbitration ruling with the team able to keep hold of the sponsorship fee for the period prior to the termination of contracts with Uralkali.

The two key clarifications are that the arbitration panel did not find that ‘Haas was in violation of contract’, as Uralkali claim, and the arbitration panel did not order Haas ‘to pay compensation to Uralkali’. The panel only ordered Haas to refund the portion of the sponsor fee attributable to the time after contract was lawfully terminated.

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The 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.’