19:40 29.12.2023

Ukraine's Ministry of Defense wins $27 mln intl trial against foreign supplier

2 min read
Ukraine's Ministry of Defense wins $27 mln intl trial against foreign supplier

Ukraine's Ministry of Defense reported that it had won an international arbitration trial against a foreign supplier worth more than UAH 1 billion.

"At the beginning of Russia's full-scale invasion, the Ministry of Defense paid orders for body armor and berets for the Armed Forces of Ukraine to a foreign supplier. Berets arrived in the summer of 2022 in violation of the deadline. Body armor arrived during the summer-winter of 2022, also with violation. They did not pass ballistic tests. Therefore, Ukraine's Ministry of Defense did not accept this product, "the ministry said on its website.

Thus, the Ministry of Defense demanded that the supplier returns the funds for poor-quality goods and pay penalties, but the supplier did not satisfy the demand.

"The legal service of the Ministry of Defense filed a lawsuit with an international arbitration tribunal on the recovery of the cost of unsupplied body armor, penalties and annual interest. The arbitration tribunal made a decision – to satisfy the lawsuit of the Ministry of Defense," the press service said.

The total amount of satisfied requirements is more than $27 million (which is the equivalent of more than UAH 1 billion) and includes penalties, annual interest and arbitration fee in addition to the cost of the goods.

It is the largest amount in all the trials the Ministry of Defense is now underway.

By decision of the international arbitration tribunal, annual interest continues to be accrued on the cost of the unsupplied products until the debt is repaid.

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