Euro-Asian Oil SA v Credit Suisse AG – Court of Appeal (Gloster, King and Simon LJJ) [2018] EWCA Civ 1720) – 25 July 2018

Sale of goods – Contract for sale of gasoil CIF Constanza – Payment to be made against shipping documents or letter of indemnity – Letter of indemnity signed by seller and by seller’s bank – Buyer paying price but receiving no product – Buyer suing seller and seller’s bank – Whether contract in fact on CIF terms – Whether seller entitled to damages – Measure of damages – Whether seller’s bank entitled to indemnity or contribution from seller

Between 2007 and 2009 Euro-Asian Oil SA (Euro-Asian) engaged in some 30 transactions with Abilo (UK) Ltd (Abilo), a company controlled by Mr Dan Igniska, involving the importation of gasoil into Romania. Euro-Asian would buy cargoes of gasoil from suppliers for delivery CIF Constanza and sell them to another company owned by Mr Igniska, either Abilo or Real Oil, on extended payment terms.