July 16, 2024

The Ukrainian Ministry of Defence (MoD) has won a lawsuit in international arbitration worth over €3 million over the supply of low-quality body armour for the Armed Forces of Ukraine (AFU).

Source: press service of the Ukrainian MoD

Details: The contract for body armour was concluded with a foreign supplier in 2022 to cover the needs of the AFU.

“The MoD has honoured its obligations under the contract in full and paid for the products on time. However, the supplier offered goods that did not meet the contractual quality and approved sample several times.

Therefore, the Ministry of Defence rejected the defective products and demanded that the supplier refund the cost of the goods and pay penalties,” the ministry said.

The Defence Ministry’s legal department filed a lawsuit in international arbitration in March this year to recover the cost of the undelivered goods, penalties and annual interest.

Following the proceedings, which lasted about six months, the arbitration tribunal ruled that the foreign supplier should pay the full value of the undelivered goods, penalties and annual interest, totalling more than €3 million, as well as the arbitration fee, to the Ukrainian Ministry of Defence.

Background: The Ukrainian Defence Ministry has filed a lawsuit against a company that supplied low-quality dry rations to the AFU, seeking to recover an advance payment and penalties of over UAH 456 million (roughly US$12.4 million).

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