Ukraine’s Defence Ministry wins arbitration on US$2.7 million compensation from foreign suppliers
Pravda Ukraine
The International Arbitration Court has awarded US$2.7 million to Ukraine’s Ministry of Defence as compensation for delayed and only partial supplies of uniforms to the country’s armed forces.
Source: press service of the Ministry of Defence
Details: The ministry stated that the court decisions concern international business agreements for the provision of uniforms to the Armed Forces of Ukraine.
Quote: “According to the agreements signed, the Ministry of Defence has fully met its obligations and paid the cost of goods on time. However, neither of the foreign suppliers delivered the goods on time. Furthermore, some parties did not deliver part of the goods paid for under the contract,” the report said.
In this regard, the Defence Ministry sought to recover the cost of undelivered goods as well as penalties for late delivery through international arbitration. In addition, annual interest on funds used was required.
“The arbitration satisfied the Ministry of Defense’s claims, and funds for undelivered goods will be returned to the ministry immediately. Furthermore, the arbitration ordered the foreign suppliers to pay interest, which will continue to accrue until the funds are returned to the Ministry of Defence,” the ministry concluded.
Background: Ukraine’s Ministry of Defence has open cash advances totaling UAH 211 billion (about US$5.3 billion) for the purchase of weapons, military equipment, and other materiel.
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