Ukraine's Defence Ministry wins €10 million court case against foreign supplier

An international court of arbitration has ordered a foreign supplier of helmets and body armour to repay Ukraine’s Ministry of Defence almost UAH 400 million (approx. €10 million) for supplying low-quality goods.

Source: the press service of Ukraine's Defence Ministry 

Quote from the Defence Ministry’s statement: "The total amount awarded is approximately €10 million and includes penalties, annual interest and the arbitration fee in addition to the actual value of the goods (since this was a foreign trade contract, the amount of the award is indicated in euros. In UAH, this amount is almost 400 million)."

Details: The Defence Ministry explained that at the beginning of the full-scale Russian invasion, body armour and helmets for the Armed Forces of Ukraine were purchased from a foreign supplier.

During the spring and summer of 2022, the supplier delivered goods of the proper quality. However, subsequent batches that arrived in autumn and winter 2022 did not pass ballistic tests, and accordingly, the Defence Ministry did not accept them.

"The Ukrainian side asked the supplier to repay the money for the goods that were supplied without confirmation of ballistic testing, and to pay penalties. The supplier did not carry out this request," the ministry explains.

In the end, the Defence Ministry’s legal department filed a lawsuit with an international arbitration court to recover the cost of undelivered body armour and helmets, penalties and annual interest.

Under the arbitral award, annual interest will continue to accrue on the value of the undelivered goods until the money is repaid.

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