Formula One F1 - Dutch Grand Prix - Circuit Zandvoort, Zandvoort, Netherlands - August 23, 2024 Haas' Nico Hulkenberg during practice REUTERS/Piroschka Van De Wouw
ZANDVOORT, Netherlands (Reuters) - The Haas Formula One team said on Friday they would repay Russian potash producer Uralkali the balance of a cancelled sponsorship contract after a visit by bailiffs at the Dutch Grand Prix.
The contract was terminated by the U.S.-owned team in March 2022 following Russia's invasion of Ukraine. Uralkali was previously majority owned by the father of the team's former driver Nikita Mazepin.
Mazepin father and son were both subject to EU sanctions but the former F1 driver was removed from the list earlier this year.
"Haas fully intends to pay to Uralkali all amounts due pursuant to the arbitration award, and there is no dispute over the amounts owed," the team said in a statement.
"Haas has been working with its lawyers to ensure payment will comply with all relevant U.S., EU, UK and Swiss sanctions laws and regulations," it added.
"We will continue working with Uralkali in the coming days to resolve this matter definitively."
No financial details were given but media reports have valued the original contract at $13 million with $9 million due to be returned.
Uralkali said last month that it was still waiting for the balance of sponsorship money, plus interest and arbitration costs, in what it called a "flagrant violation" of a Swiss arbitral tribunal ruling in June.
It said Haas had also failed to hand over to Uralkali a Formula One car from the 2021 season, as stipulated in the contract.
"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," the statement said.
Uralkali told the website on Friday that Dutch bailiffs and police had arrived at the Haas paddock hospitality on Thursday to take an inventory of racing equipment.
"We are delighted to hear that, following last night’s visit from Dutch authorities, Haas is finally paying attention to the arbitral ruling," it said.
Haas took part in Friday practice as normal ahead of Sunday's race at Zandvoort.
(Reporting by Alan Baldwin, editing by Ed Osmond)
