Lviv’s Dispute with Polish Contractor: Kowal Addresses Pattern of Business Friction
As Lviv authorities attempt to terminate a contract with Poland’s Control Process S.A., Polish officials and international arbitration bodies warn that ignoring legal rulings threatens the...
As Lviv authorities attempt to terminate a contract with Poland’s Control Process S.A., Polish officials and international arbitration bodies warn that ignoring legal rulings threatens the city’s standing with European investors.
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Contractual Conflict and Arbitration
In March, the Lviv City Council announced that the municipal company Green City had sent a notice to Polish firm Control Process S.A. regarding the termination of a contract for a waste processing complex. The Polish firm maintains there are no grounds for contract termination, noting that disputes have been subject to FIDIC arbitration procedures.
Business Insider reports that the Polish company has already won seven proceedings and secured 75 favorable decisions. On May 16, the International Chamber of Commerce (ICC) in Paris ruled that the city’s attempt to terminate the contract and shift jurisdiction to a court in Kyiv was unlawful.
Government Intervention and Business Support
Paweł Kowal, chairman of the Council for Cooperation with Ukraine, stated that the Polish government is providing full support to the company. He noted that the issue is not isolated, but emphasized that the government is closely analyzing this case to learn lessons for future agreements and ensure Polish businesses feel supported abroad.
Kowal warned that by disregarding international arbitration, the Mayor of Lviv is isolating the city from Europe. He urged local authorities to maintain Lviv’s reputation as a gateway for European investment.
Diplomatic Tensions During URC26
Tensions surfaced around the Ukraine Recovery Conference (URC) in Gdańsk, where Mayor Andrij Sadovy held a separate event. Foreign Ministry spokesperson Maciej Wiewiór clarified that the mayor was not invited to the official URC26 conference and condemned the city’s actions toward the Polish firm as unacceptable.
In response, Mayor Sadovy dismissed the ministry’s criticism, questioning the relevance of the dispute to the conference and challenging the spokesperson to provide documentation regarding the alleged international arbitration findings.