ERC business approach during war time

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16.03.2022

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ERC business approach during war time with russia and froce majeure notification.

Dear business partners,

It will be time to remember it all someday, after having longly saved nights and days. We have already studied the sounds of shots and explosions of all types. It's not as scary as it used to be. The time of saving families and impulsive actions is passing, the time of organized resistance to enemies and maintaining the viability of the country is continuing and unfolding.

The vast majority of us do not have professional military experience or combat experience, so we must use what we can do most effectively for the country at our current locations. We do what we have to do calmly and honestly and let it be what it will be. We set up for resistance and victory, call on our international suppliers to support and understand the temporarily terrible living and working conditions.

Due to the difficult situation in Ukraine caused by the military aggression of the russian federation, the ERC distribution team is making and will make every effort to fulfill its obligations to business partners. We are ready to continue doing business not only in other countries where we had business until February 24, 2022, but also to resume it in Ukraine. We are on our Earth, in Ukraine - from the owners of the company to the top management and employees and will soon re-establish the ERC from other locations in Ukraine. Those who have temporarily left Ukraine will also not stand aside.

The technical and logistical stages of preparation for the resumption of distribution activities have already begun. A small number of shipments have been restored. We care how to scale it and we will do this shortly in a few days. Almost all the company's specialists are ready, many have left the occupied territories, many have replaced those who have already joined and been drafted into the Armed Forces, Territorial Defense, or National Guard. Many are waiting in a huge queue for reservists of the second and other waves for this. Unity, defense, cohesion, support - all of this will help professionals in Ukraine in all positions.

In the meantime, we ask our suppliers:

to check and cancel our production and transit orders, unless we have not confirmed otherwise;
to confirm critical orders, we placed and to propose special credit lines as many suppliers have already done;
to return to our accounts the partial or full prepayments for any sleeping orders and send back transits. Please send us all bonuses and/or marketing compensations for the past and current periods to convert them into real actions to recover business.

We ask our buyers to find an opportunity to pay for pre-war deliveries and subscriptions (under agreed conditions) for new orders. Shortly we will announce the possibility of new shipments for the new orders.

It is perfectly understandable, the world needs to admit there is war with Russian aggressors, there are force majeure circumstances. Please note this notification:

NOTIFICATION on the occurrence of force majeure circumstances in accordance with Part 1 of Article 79 United Nations Convention on Contracts for the International Sale of Goods of 11 April 1980 (Vienna Convention), a party is not liable for a failure to perform any of their obligations if they prove that the failure was due to an impediment beyond their control and that they could not reasonably be expected to have taken the impediment into account at the time of the conclusion of the contract or to have avoided or overcome it or its consequences.

The force-majeure circumstances shall be the events beyond the will and control of the Party referring to such circumstances, and the events, which directly influence the Party's possibility to fulfill its obligations hereunder. In connection with the military aggression of the russian federation against Ukraine by the Decree of the President of Ukraine № 64/2022 of 24.02.2022 on the whole territory of Ukraine starting from February 24, 2022, martial law was imposed for a period of 30 days and in accordance with decree No. 133/2022 of 14.03.2022, the term of martial law was extended from 05:30 on 26.03.22 for an additional 30 days. In accordance with the requirements of the current legislation of Ukraine hostilities declared and undeclared war, armed conflict, or a serious threat of such conflict, including but not limited to hostile attacks are force majeure -extraordinary and unavoidable circumstances that objectively make it impossible to fulfill the obligations under the terms of the contract (contract, agreement, etc.), obligations under laws and regulations. According to paragraph 3 of part 3 of Article 14 of the Law of Ukraine "On Chambers of Commerce and Industry of Ukraine" from 02.12.1997 № 671/97-BP, certification of force majeure is attributed to the powers of the Chamber of Commerce and Industry of Ukraine. The Chamber of Commerce and Industry of Ukraine has certified the fact of force majeure on February 24, 2022 (Letter of the Chamber of Commerce and Industry of Ukraine dated 28.02.2022 № 2024 / 02.0-7.1 is attached).

In view of the above, considering the objective threats to life and health of employees of the ERC group of companies (ERC) and in order to minimize these risks, ERC notifies all suppliers under concluded agreements and deals, on the occurrence of force majeure circumstances (force majeure), which may objectively prevent the proper and timely fulfillment of obligations under the terms of concluded agreements (contracts, agreements, etc.), obligations under laws and regulations.

At the same time, ERC announces that after ending (or even during) the above-mentioned force majeure circumstances, ERC will make maximum efforts in order to fulfill the mutually agreed obligations in the shortest possible time.

We call on all our business partners, all suppliers over the world, and their verticals, which have not yet stated this to stop any sales and after-sales support activities in the country of the aggressor Russia and its satellite Belarus. Accordingly, we ask to change the management verticals, which no longer have to lead through any business chains to business offices and persons, citizens connected to russia and Belarus.

Let's unite, resume work. Remotely and locally. We support all forces that are determined to maintain the viability of the country. The national spirit will be even stronger when we set up organized assistance by providing the necessary on a volunteer and other basis. We unite with all our might and promote joint actions of a united country!

The anxious gleam in the eyes of our women and children during these war nights motivates for action. Every day and every night we are driven by anger and rage at enemies from Moscow, against the Russian slave spirit and their scum.

Unity, peace, cohesion, support - all of this will help professionals in Ukraine in all positions!
Volodymyr Kostenko
CEO ERC

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