Following the Russian-Ukrainian conflict last March, the Haas team unilaterally terminated its Uralkali sponsorship deal due to ties company owner Dmitry Mazepin had with the country’s president, Vladimir Putin.
The team also ended its deal with race driver Nikita Mazepin, who has since been replaced by Dane Kevin Magnussen. At the time, Uralkali said that he was considering taking legal action over the matter, as he sought reimbursement for sponsorship money he had paid prior to the season.
In a statement issued last month, the company was quick to position itself:
“As most of the sponsorship funds for the 2022 season have already been transferred to Haas and since the team terminated the sponsorship agreement before the first race of the 2022 season, Haas has not fulfilled its obligations to Uralkali for the this year’s season. In this way, we will request immediate reimbursement of the amounts”.
Uralkali subsequently wrote to the American team to claim the team’s rights to terminate the contract, as well as to request a refund of €12 million that had been paid in advance. However, it has emerged that Haas has formally responded to Uralkali’s letter and has completely rejected the company’s claims.
In the Kannapolis-based team’s letter to the Russian company, a copy seen by Motorsport.com, the American team insisted it had rights due to a clause in the sponsorship deal that Uralkali did not ‘harm, question, ridicule or diminishes Haas’ public reputation, goodwill, or favorable image.
The US team claimed that Mazepin’s links, allied to the sanctions imposed by the European Union, triggered the discredit clause. In the letter, Haas makes his case for why he thinks Uralkali’s sponsorship should not be repaid.
“According to unanimous legal professionals and jurisprudence, the party that terminates the agreement for breach of the other party does not have the obligation to return to that party what it has already received under the agreement,” they stated.
“Therefore, Uralkali’s claim to obtain the refund of the initial payment is unfounded and rejected.”
Haas adds that beyond the money already paid, the team is also entitled to compensation for lost profits it believes would have been made if the Uralkali deal had continued. Subsequently, he has demanded the payment of 8 million euros in his place, which he wants to transfer in a matter of days.
Haas has also made it clear that it will not follow through on the clause in its original contract for Uralkali to take delivery of one of Mazepin ‘s 2021 F1 cars until it has received the €8m payment. The letter adds: “Unless and until Haas has been paid the aforementioned amount, there is no obligation on Haas’ part to deliver and no delivery of the F1 car will take place.”
According to sources close to him, Haas also refused to pay Mazepin his salary for time worked this season before his contract was cancelled. Haas’s stance is understood to have left Uralkali stunned, with sources saying they remain “in disbelief” about the withholding of money, the 2021 car and the demand for additional payment.
Representatives for Uralkali and Nikita Mazepin declined to comment on the matter, instead referring to an earlier statement that had been posted on the company’s website. The matter is almost certainly now headed to court, barring a last-minute change of focus by Haas on the matter.
