The International Court of Arbitration ordered the foreign supplier of helmets and body armor to return to the Ministry of Defense of Ukraine almost 400 million hryvnias for poor quality product.
About this informs press service of the Ministry of Defense.
“The total amount of satisfied claims is approximately 10 million euros and includes, in addition to the actual value of the goods, fines, interest for a year and an arbitration fee (since the contract is foreign economic, the amount of obligations is in euros. In hryvnias, this amount is almost 400 million)” , – the message says.
The ministry explains that at the beginning of the full-scale invasion, body armor and helmets for the armed forces were purchased from a foreign supplier.
During the spring and summer of 2022, the supplier delivered good quality goods. However, subsequent batches that arrived in the fall and winter of 2022 did not pass ballistics tests. Accordingly, the Ministry of Defense did not accept them.
“The Ukrainian side demanded from the supplier to return the money for the goods, which were supplied without confirmation of ballistic tests, and to pay fines. The supplier did not fulfill the demand,” the ministry explains.
In the end, the legal service of the Ministry of Defense filed a lawsuit with the International Arbitration Court to recover the cost of the undelivered body armor and helmets, fines and annual interest.
According to the arbitration decision, annual interest continues to accrue on the value of the undelivered goods until the money is returned.