Formula 1 underdogs Haas have rejected former title sponsor Uralkali’s initial demand for a refund of approximately £10 million - and have even asked for compensation from the Russian company.
Uralkali were unceremoniously dropped by Haas a few weeks after Russia turned to military action to invade Ukraine. Nikita Mazepin, who struggled as a rookie alongside fellow newcomer Mick Schumacher in 2021, lost his seat while father Dmitry saw his company removed as sponsors due to their close ties to Russian president Vladimir Putin.
Following the news that Haas were set to end their partnership with the Russian oligarch, the Mazepins demanded a full refund of the money they had paid to the team when the deal was penned prior to the start of the 2021 season. In a statement released last month, Uralkali said: “As most of the sponsorship funding for the 2022 season has already been transferred to Haas and given that the team terminated the sponsorship agreement before the first race of the 2022 season, Haas has thus failed to perform its obligations to Uralkali for this year's season.”
However, Motorsport.com are reporting that Haas have refused to refund the money it received from the Mazepins - and have even looked into receiving compensation. The American team, who entered the sport in 2016 after forming a relationship with motorsport giants Ferrari, believe Uralkali negatively affected the image of Haas.
The report quotes a letter from Haas to Uralkali that directly cites a clause in the sponsorship agreement that the company perhaps breached amid the ties to Putin and the Russian invasion of Ukraine, which received widespread condemnation. The clause stated the Russian company could not ‘injure, bring into dispute, ridicule or lessen the public reputation, goodwill or favourable image of Haas’.
“According to unanimous legal scholars and case law, the party which terminates the agreement for breach of the other party is under no obligation to return to such party what it has already received under the agreement,” read the letter written by Haas. “The claim of Uralkali to obtain the re-payment of the down paid amount of EUR 12,000,000 (approximately £10m) is therefore ungrounded and rejected.”
Do you think Haas should refund Uralkali after the company was dropped as sponsor? Let us know in the comments section.
Haas is also allegedly hoping to recover losses it believes would have been made had Uralkali stayed on as title sponsor and not breached the original deal. This sum is believed to be around £6.6m.
The report also cites Haas’ unease with the Russian company’s close ties to Russian government as well as the fact that both Mazepins have been sanctioned - although this did not fully occur until after the initial contracts had been terminated.
Haas have appeared to put their pre-season frustrations behind them, with Kevin Magnussen - who replaced Mazepin as driver alongside Schumacher - finishing a stellar P5 at the season-opening Bahrain Grand Prix. Since then, Magnussen finished ninth in Saudi Arabia to add another two points before a disappointing outing in Australia.
The 22-race 2022 campaign - which is expected to return to a record 23 races in the near future once a Russian Grand Prix replacement is found - continues with the Emilia Romagna Grand Prix on April 24.
