The Ministry of Defense wins arbitration for more than a billion hryvnias for boots and bulletproof vests not delivered on time

The Ministry of Defense of Ukraine has won another international arbitration with a foreign supplier in the amount of more than 27 million USD (equivalent to over one billion hryvnias). Another win in international court was reported by . court was reported by the Ministry of Defense, UNN reports.

Details

The Defense Ministry said that at the beginning of the the beginning of the full-scale invasion, the department placed and paid for an order from a foreign supplier for bulletproof vests and boots for the Armed Forces. However, according to the Ministry of Defense, the ordered goods arrived later than the contractual deadlines terms and of poor quality.

The boots were delivered in the summer of 2022, behind schedule. of delivery. Body armor was delivered in the summer and winter of 2022, but also with violations - they did not pass ballistic tests. Therefore, the Ministry of Defense of Defense of Ukraine did not accept the goods.

Taking into account the violations of the Ministry of Defense of Ukraine sent a demand to the supplier to refund the money for the defective goods and pay penalties. The supplier did not satisfy the demand. Therefore, the legal service of the Ministry of Defense filed a claim to international arbitration to recover the cost of of the undelivered bulletproof vests, penalties and interest per annum. The arbitration tribunal ruled to satisfy the claim of the The Ministry of Defense.

The total amount of satisfied claims is more than 27 million US dollars (equivalent to over one billion hryvnias) and includes includes, in addition to the value of the goods, penalties, interest per annum and arbitration fees. This is the largest amount of all the arbitrations currently underway by the Ministry of Defense.

This amount is the result of the coordinated work of the team of lawyers of the of the Ministry. Recovery of damages caused to the Ministry and the state by caused by unscrupulous suppliers is one of the Ministry's priority goals. 

According to the the international arbitration award, interest per annum will be charged on the the value of the undelivered goods until the debt is repaid.

Один з постачальників Міноборони: ДБР затримало бізнесмена на хабарі у пів мільйона доларів29.12.23, 15:42

Recall

Earlier UNN wrote that the Ministry of Defense of Ukraine won five arbitrations with foreign suppliers for more than UAH 900 million. hryvnias.