Haas F1's dispute with Uralkali and team's status for Italian Grand Prix, explained

26/08/2024 15:06

After a bizarre weekend in Zandvoort, Haas is finally set to travel to Monza for the Italian Grand Prix

A day after the Dutch Grand Prix, the Haas F1 Team finally has their trucks on the road from Zandvoort and en route to Monza.

While that statement might seem a routine aspect of life in Formula 1, this was not a given a few days ago.

Haas has been embroiled in a dispute with Uralkali, a Russian fertilizer company, and their former title sponsor, for months. In the wake of Russia's invasion of Ukraine in February of 2022, Haas terminated that sponsorship deal and dropped driver Nikita Mazepin, son of Uralkali head Dmitry Mazepin, as both were initially subjected to sanctions by the European Union.

Uralkali eventually filed suit in Switzerland maintaining that Haas was responsible for the terms of the sponsorship agreement, terms which included that the team deliver a race car from the 2021 season to the company.

In June that matter reached a Swiss Arbitration Tribunal, which rendered a decision. That decision found that Haas was within their rights to terminate the agreement, but was required to send any balance of proceeds received by the team prior to the termination date to Uralkali.

That meant Haas still owed the company $9 million, as well as one race car.

However, by July, Uralkali had not received what they were owed under the arbitration ruling.

"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," said Uralkali in July.

That led to the latest twist in the saga, which the entire F1 world saw in Zandvoort over the weekend of the Dutch Grand Prix. Uralkali sought intervention from a Dutch court, and on Thursday ahead of the Dutch Grand Prix Dutch officials arrived at the paddock to take "inventory" of Haas' assets and to keep them isolated, in case of a need to seize them if ordered to do so.

On Friday Uralkali released another statement.

"We are aware that Dutch bailiffs, accompanied by police, last night arrived at the Haas paddock and took an inventory of all racing equipment and other property.

"This is the expected consequence of Haas' refusal to obey the ruling of arbitrage awarding payment and a race car to Uralkali.

"The arbitral ruling was issued June 12 with immediate effect and has been ignored by Haas.

"Haas has had over two months to implement the ruling, and, as was reported previously, Uralkali reached out to Haas' representatives with options about how to make payment and where to send the race car, without ever receiving a substantive answer.

"There are not now and never have been any sanctions issues preventing Haas from fulfilling its obligations. Nevertheless, they have gone unfulfilled.

"We are delighted to hear that, following last night's visit from Dutch authorities, Haas is finally paying attention to the arbitral ruling. Uralkali wants nothing more than to receive what it was awarded during a fair judicial process and hopes that Haas will move quickly to rectify the situation so that all sides can move on."

Haas Team Principal Ayao Komatsu was asked about the situation during Friday's FIA Press Conference, and had this to say: "So obviously arbitration ruling was made and then we accepted it. We're not disputing it whatsoever," said Komatsu. "And then it's a complicated process to transfer the funds across. And then we're working on it and it's been taking longer than I would like. But yeah, we are fully focused on making it across as soon as possible."

It is believed that the "complicated process" Komatsu refers to relates to the fact that while sanctions were lifted on the Mazepin family, they remain in place regarding the company itself.

As of Sunday night, confirmation that the payment from Haas had been finalized was still pending, so their trucks were not able to leave Zandvoort and head to Monza for next weekend's Italian Grand Prix.

However, in a new statement released by Uralkali on Monday, the company confirmed that Haas has fulfilled its obligations.

"Uralkali confirms that we have received in full the payment owed by Haas (including interest and fees) following the ruling of the Swiss court of arbitration. We have also collected the race car owed to us under the terms of the sponsorship agreement.

"As such, Uralkali has notified Dutch authorities that they may release Haas' assets from arrest as an interim measure, and Haas is free to take them out of the Netherlands."

Haas can now head off to the Temple of Speed, for next weekend's Italian Grand Prix.