The Ministry of Defence won an international arbitration against a foreign supplier for more than € 3 million
Ministry of Defence of Ukraine
2023-09-21 17:55:00 | ID: 70760
The Ministry of Defence of Ukraine won a dispute in international arbitration for € 3 million for low-quality body armours for the Ukrainian Armed Forces.
The dispute arose out of a foreign economic contract for the supply of body armours, signed with a foreign supplier in 2022 to meet the needs of the Armed Forces of Ukraine.
The Ministry of Defence fully complied with its obligations under the contract and paid the cost of the goods on time. However, several times the supplier offered a product not in conformity with the contract in terms of quality and the agreed sample.
As such, the Ministry of Defence refused the low-quality product and demanded that the supplier return the cost of the product and pay fines.
In March 2023, the Legal Department of the Ministry of Defence filed a lawsuit to international arbitration to collect the value of the undelivered goods, fines and annual interest.
After the trial, which lasted for about six months, the arbitration tribunal decided to recover from the foreign supplier in favour of the Ministry of Defence the full value of the undelivered goods, penalties and annual interest, totalling more than € 3 million, as well as obliged the supplier to pay the arbitration fee.
The Legal Department of the Ministry of Defence continues working to protect the rights and interests of the Ministry of Defence.
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