Ministry of Defense wins international arbitration with foreign supplier for more than one billion hryvnias
The Ministry of Defense of Ukraine has won an international arbitration against a foreign supplier from which it ordered equipment for the Ukrainian military.
Censor.NET reports with reference to the Facebook account of the Ministry of Defense.
"At the beginning of Russia's full-scale invasion, the Ministry of Defense paid a foreign supplier for bulletproof vests and boots for the Armed Forces. The boots were delivered in the summer of 2022 with a delay in delivery. The bulletproof vests were delivered in the summer and winter of 2022, but also with violations - they did not pass ballistic tests. Therefore, the Ministry of Defense of Ukraine did not accept this product," the Ministry of Defense said.
Due to the inadequate quality, the Ministry sent a demand to the supplier to refund the money for the defective goods and pay penalties. The supplier did not comply with the demand.
Following the supplier's refusal, the Ministry of Defense's legal service filed a lawsuit in international arbitration to recover the cost of the undelivered bulletproof vests, penalties and annual interest.
"The arbitral tribunal has decided to satisfy the claim of the Ministry of Defense. The total amount of the satisfied claims is more than USD 27 million (which is the equivalent of more than one billion hryvnias)," the Ministry said.
This is the largest amount of all the arbitrations currently being conducted by the Ministry of Defense.
According to the decision of the international arbitration, interest per annum continues to be accrued on the value of the undelivered goods until the debt is paid.
