The Ministry of Defense won an international arbitration award of more than 3 million euros for substandard body armor. Photo: Arsenal Patriot
Ukraine’s Defense Ministry has defeated a foreign company in international arbitration over the purchase of armored personnel carriers for the armed forces. A private company has been forced to pay 3 million euros to supply low-quality body armor
What the Ministry of Defense accused the supplier of body armor
In 2022, a contract for the supply of body armor was signed between the Ministry of Defense of Ukraine and a foreign supplier. The Ministry of Defense fully fulfilled its obligations under the contract and paid the price of the goods on time. However, the supplier has repeatedly delivered product that does not meet the terms of the contract regarding quality and agreed upon model.
The Ministry of Defense filed a claim with the International Arbitration for recovery of the value of the undelivered goods, penalty and annual interest.
Conclusion: The arbitral tribunal decided to recover from the foreign supplier in favor of the Ministry of Defense the full value of more than 3 million euros, as well as arbitration, undelivered goods, penalties and annual interest.
We will remind that law enforcement authorities suspect that Lviv Arsenal company embezzled UAH 1.4 billion. The latter received payment from the Ministry of Defense to supply a large batch of 120 mm and 82 mm mortar rounds. However, the company has long since expired the contract and has not handed over any landmines to the armed forces.
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