Palmali Shipping SA v Litasco SA [2025] EWHC 1149 (Comm) (23 May 2025)

Palmali claimed some USD120m remuneration under a 10+5 year COA said to have been concluded with Litasco, whereby Palmali would exclusively transport for Litasco, from Russian ports, 400,000 - 700,000 mt monthly of Lukoil refinery products. The Court found the arrangement did not amount to an enforceable COA as it was merely an agreement to agree and of no legal effect. In particular, there was no agreement on rates, the parties did not treat the COA as in place (other contracts covering such transactions as took place) and the arrangement was commercially absurd for both.

Read the full judgment here.