The Ministry of Defense wins arbitration for more than UAH 700 million for late delivery of equipment for the Armed Forces
Kyiv • UNN
The Ministry of Defense of Ukraine has won an international arbitration against foreign suppliers, recovering more than UAH 700 million for undelivered or poor-quality military equipment and protective gear.
The international arbitration tribunal has issued three awards awarding the Ministry of Defense of Ukraine funds totaling more than 14 million euros and 4 million dollars. This was reported by UNN with reference to the Ministry of Defense of Ukraine.
Details
The Ministry noted that the decisions relate to foreign economic contracts for the supply of various types of material property and protective equipment for the Armed Forces of Ukraine, including winter uniforms, bulletproof vests, etc.
According to the concluded foreign economic contracts, the Ministry of Defense fully fulfilled its obligations and paid the cost of the goods on time.
However, none of the foreign suppliers delivered the goods on time. In addition, some counterparties delivered partially defective goods or did not deliver the part of the goods paid for under the contract at all
In this regard, the defense ministry applied to international arbitration to recover the cost of defective and undelivered goods and penalties for late delivery. The Ministry of Defense also demanded the recovery of interest per annum for the use of funds. (...) The arbitration upheld the claims of the Ministry of Defense. In their awards, the arbitrators recognized the legitimacy of the MoD's rejection of the defective goods and were unanimous in their conclusion that there was no force majeure. According to the arbitral awards, the funds for the undelivered goods are subject to immediate return to the Ministry of Defense
Addendum
The defense ministry said that the suppliers themselves did not agree with the ministry's requirements. In their opinion, the rejected goods were of proper quality. At the same time, the delay or non-delivery of the goods was allegedly caused by force majeure.
However, the arbitration not only upheld the Ukrainian ministry, but also ordered the foreign suppliers to pay interest, which continues to accrue on the funds until they are returned to the Ministry of Defense.
The Ministry of Defense of Ukraine monitors the fulfillment of obligations by suppliers to ensure that the Ukrainian army receives all types of supplies on time and of proper quality. At the same time, the Ministry of Defense takes all legal measures to protect its rights and interests in relations with unscrupulous suppliers
Recall
The Ministry of Defense of Ukraine has won an international arbitration against a foreign supplier, recovering more than USD 27 million for the late delivery of low-quality bulletproof vests and boots.
