The Ministry of Defense won almost UAH 400 million in court against a foreign supplier

5 November, 2023 Body armor and helmets, the photo is illustrative. Photo from open sources The Ministry of Defense of Ukraine has won almost UAH 400 million in court against a foreign supplier of body armor and helmets.

The press service of the Ministry of Defense reported on this. According to the decision of the International Court of Arbitration, the foreign supplier must return the money to the Ministry of Defense of Ukraine for the defective goods. The total amount of the satisfied claims is approximately EUR 10 million and includes, in addition to the value of the goods, penalties, interest for one year, and arbitration fees.

Since the agreement is a foreign economic agreement, the amount of liabilities is expressed in euros. In hryvnia, this amount is almost 400 million.

Body armor and helmets, illustrative photo. Source: Metinvest

At the beginning of the full-scale invasion, the Ministry of Defense purchased bulletproof vests and helmets for the Armed Forces of Ukraine from this foreign supplier.

During the spring and summer of 2022, the supplier has been delivering products of good quality. However, subsequent shipments in the fall and winter of 2022 did not pass ballistic tests, and the Ministry of Defense did not accept them. The Ukrainian side demanded that the supplier refund the money for the goods that were delivered without proof of ballistic testing and pay penalties.

The supplier did not comply with the demand. The Legal Service of the Ministry of Defense filed a lawsuit in an international arbitration court to recover the cost of the undelivered bulletproof vests and helmets, penalties, and annual interest. According to the arbitration award, annual interest continues to accrue on the value of the undelivered goods until the money is returned.

Body armor and helmets, illustrative photo.

Photo from open sources

In August, Militarny reported on Turkish fraudsters who were being tried under a Ukrainian lawsuit. Six fraudsters were to be sentenced. Four suspects were facing more than 26 years in prison, and the other two - up to 31,5 years.

The fraudsters were supposed to supply personal protective equipment and weapons to the Armed Forces of Ukraine.

After paying the first installment of £5.1 million, Ukraine did not receive the promised goods.