Untimely delivery of uniforms for the Armed Forces: The Ministry of Defense of Ukraine wins international arbitration for almost UAH 180 million

The International Arbitration Court has issued three awards awarding almost UAH 180 million in favor of the Ministry of Defense of Ukraine for the untimely and inadequate supply of clothing for the Armed Forces of Ukraine. This is reported by UNN with reference to the Ministry of Defense of Ukraine, UNN reports.

Details

The international arbitration tribunal issued three awards awarding the Ministry of Defense of Ukraine a total of UAH 179,789,482.24 (USD 4,423,578.27) in damages against the foreign supplier

As noted, the decisions relate to violations of foreign economic contracts for the supply of material property, namely military clothing for the Armed Forces of Ukraine.

Under the contracts, the Ministry of Defense fully fulfilled its obligations by paying for the goods on time. However, the foreign supplier did not fulfill its part of the agreement, providing goods with significant delays and of inadequate quality.

In this regard, the Ministry of Defense has applied to international arbitration to recover funds from the supplier for late deliveries and impose penalties on it.

In its turn , the arbitral tribunal ruled to satisfy the claims of the Ministry of Defense of Ukraine. 

From now on, funds for undelivered goods, delayed deliveries and delivered but not accepted defective goods are subject to immediate collection in favor of the Ministry. The foreign supplier is also obliged to pay annual interest to the Ministry of Defense until the debt is actually paid

Recall

Last year, Ukraine's Ministry of Defense won an international arbitration against a foreign supplier, recovering more than $27 million for the late delivery of low-quality bulletproof vests and boots.