The litigation team of Reff & Associates | Deloitte Legal has assisted Cerealcom Dolj SRL, one of Romania’s leading grain producers and exporters, in connection with an arbitration held in London under the auspices of the prestigious international association GAFTA (Grain and Feed Trade Association), in a dispute with a Saudi Arabian entity regarding a multi-annual contract for the production and sale of 1.5 million tonnes of Romanian wheat, with an estimated value of more than USD 400 million.

The GAFTA Tribunal confirmed the validity of the contract and found that the Saudi partner had fundamentally breached its obligations in respect of the 2024 and 2025 harvests, as well as those relating to the advance payment for the 2023 harvest. At the same time, the court held that the Romanian party complied with the contract and was therefore entitled to suspend deliveries as a result of these non-payments, rendering the Saudi company’s decision to terminate the contract invalid. In addition, the tribunal dismissed in full the claims brought by the Saudi company, amounting to nearly USD 25 million, and confirmed Cerealcom’s entitlement to claim damages for the losses caused, the amount of which will be determined in separate arbitral proceedings.

Although the decision of the tribunal constituted under GAFTA rules may be subject to appeal, Cerealcom is entitled to immediately initiate legal proceedings to establish the amount of financial compensation for the losses suffered as a result of the Saudi company’s fundamental contractual breaches.

In this arbitration, Cerealcom was assisted by a consortium comprising the London law firm Mishcon de Reya, with a team led by Greg Falkof, Partner, who provided representation and advice on English law, and Reff & Associates | Deloitte Legal, through its litigation team coordinated by Mihnea Galgoțiu-Săraru, Partner, and including Alina Stan, Senior Managing Associate, and Sorin Sîrbu, Senior Associate.

“We are honored to have contributed, through the expertise of our team, to this significant victory for a leader of Romania’s agricultural sector and to strengthen, through this success, the position of Romanian exporters on major international markets, such as those governed by GAFTA rules,” said Mihnea Galgoțiu-Săraru, Partner at Reff & Associates | Deloitte Legal, Leader of the Commercial and administrative dispute resolution practice.

“We welcome this ruling with great satisfaction, as it confirms the correctness of our position and acknowledges the efforts made by the company in honoring the contract. Cerealcom remains a reliable partner, committed to fulfilling its obligations and expecting the same level of responsibility from all its collaborators,” said Mihai Anghel, Chief Executive Officer of Cerealcom Dolj SRL.

With a team of 86 lawyers specialized in the main areas of business law, Reff & Associates | Deloitte Legal is one of the leading law firms in Romania and a member of the global Deloitte Legal network, which brings together more than 2,500 lawyers in 80 countries.

The litigation practice of Reff & Associates | Deloitte Legal comprises nearly 30 lawyers and takes a distinctive approach to the full spectrum of business disputes, including commercial and administrative disputes, international arbitrations, tax cases and public procurement procedures. The team works closely with professionals across all Deloitte practice areas, including tax and financial consultants, as well as risk management and digital transformation experts, in order to deliver comprehensive and innovative solutions to clients.

For more information about Reff & Associates | Deloitte Legal, please visit www.reff-associates.ro. For more information about the global Deloitte Legal network, please visit www.deloittelegal.com.