Israeli Court Revokes ICAC Arbitration Award!

An Israeli court revoked ICAC arbitration awards obtained by the Ukrainian Ministry of Internal Affairs, and declared them unenforceable due to what it considered to be unjust arbitration procedures under Section 5 of the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards.

The Ukraine Ministry of Internal Affairs (Department of Material Provisions) had obtained an arbitration award in its favor in the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry (ICAC), according to which an agreement signed with an Israeli supplier was declared void due to the unauthorized signature of the contract (by the Ukrainian Department of Material Provisions). Under a second consecutive arbitral award, the Ukrainian party was awarded restitution of over 1 million US$ paid to the Israeli supplier. This decision was also based upon the previous finding that the relevant agreement was void.