The supply of goods was stopped due to sanctions - the court did not allow the contract to be terminated under Law N 223
The supplier offered to terminate the contract by agreement of the parties and return the security for its execution: the manufacturer of imported products announced the suspension of shipments of goods due to sanctions. The Regional Chamber of Commerce and Industry confirmed in a letter that this circumstance affects the ability to fulfill the contract.
The customer did not agree with the termination, since the disputed product is important for the implementation of the regional program. He also refused the proposal to change the price, payment procedure and delivery time.
The counterparty tried to terminate the contract and return the security in court, but he refused:
- in the terms of reference from the documentation there is no model of the product of a particular manufacturer. It was proposed by the supplier himself during the purchase. He should have assessed the risks of default;
- no attempts were made to fulfill the contract, they immediately wanted to terminate or change it. It does not follow from the correspondence of the parties that the customer was offered an alternative product. This was done only in court;
- the intention to purchase goods from the manufacturer has not been proven. The contract, correspondence with him or other supporting documents were not submitted;
- the necessary goods could be purchased, including through parallel imports. The fact that the products are unique and that they were not on the Russian market during the period of conclusion and execution of the contract was not proved;
- under the terms of the contract, force majeure circumstances could be confirmed, for example, by a certificate or certificate from the regional Chamber of Commerce and Industry, and not a letter from this organization. It does not follow from it that the disputed goods cannot be delivered. Force majeure was not proved, the procedure for its confirmation was violated;
- the restriction on the supply of goods to the Russian Federation from a number of countries does not apply to a significant change in circumstances, since it does not meet the signs of an emergency. Import bans have been introduced before. Sanctions against the Russian Federation are a well-known fact. The fact that personal sanctions were imposed against the counterparty was not proved. He should have been aware of the risks associated with the purchase of goods from an imported manufacturer in the current external economic situation.
Document: Decision of the Arbitration Court of the Republic of Buryatia dated January 26, 2023 in case N А10-4385/2022