Ukraine’s Defence Ministry wins €10 million court case against foreign supplier
Pravda Ukraine
The International Arbitration Court ordered a foreign supplier of helmets and body armour to return almost UAH 400 million (approx. €10 million – ed.) for low-quality goods to the Ministry of Defence of Ukraine.
Source: the press service of Ukraine’s Defence Ministry
Quote: “The total amount of satisfied claims is approximately €10 million and includes, in addition to the actual value of the goods, penalties, interest per year and arbitration fee (since the contract is external economic, the amount of claims is indicated in euros. In UAH this amount is almost 400 million),” reads the statement.
Details: The ministry explains that at the beginning of the full-scale Russian invasion, body armour and helmets for the Armed Forces of Ukraine were purchased from a foreign supplier.
During the spring and summer of 2022, the supplier transferred goods of proper quality. However, subsequent batches arriving in autumn and winter 2022 did not pass ballistic tests. Accordingly, the Defence Ministry did not accept them.
“The Ukrainian side demanded that the supplier return the money for the goods that were supplied without confirmation of ballistic tests, and pay penalties. The supplier did not fulfil the requirement,” the ministry explains.
In the end, the legal service of the Defence Ministry filed a lawsuit in the international arbitration court to recover the cost of undelivered body armour and helmets, penalties and interest per annum.
By decision of the arbitration, annual interest continues to accrue on the value of undelivered goods until the money is returned.
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