The Ministry of Defence has won an international arbitration against a foreign supplier for more than 1 billion hryvnyas. The dispute concerns the supply of bulletproof vests and boots.
According to the Ministry of Defence, at the beginning of Russia's full-scale invasion, the ministry paid a foreign supplier for bulletproof vests and boots for the Armed Forces.
The boots were delivered in the summer of 2022 in violation of the delivery time. The bulletproof vests were delivered in the summer and winter of 2022, but did not pass ballistic tests.
Therefore, the Ministry of Defence of Ukraine did not accept the goods and asked the supplier to refund the money and pay penalties, but the supplier did not comply.
The Ministry of Defence then filed a claim in international arbitration to recover the cost of the undelivered bulletproof vests, penalties and interest per annum.
The arbitration tribunal fully satisfied the claims of the Ministry of Defence.
The total amount of the satisfied claims is over 27 million dollars (equivalent to over 1 billion hryvnyas) and 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 in which the Defence Ministry is currently being involved.
In addition, according to the international arbitration award, interest per annum continues to be accrued on the value of the undelivered goods until the debt is repaid.