The Ministry of Defense of Ukraine was involved in a dispute with a foreign supplier regarding the violation of the terms of an international trade contract for the supply of protective equipment for the Armed Forces, specifically elbow and knee pads.
According to the statement from the Ministry of Defense of Ukraine, the supplier not only breached the delivery deadlines but also provided only about 11% of the total agreed volume of goods. The Ministry of Defense, on the other hand, fulfilled its contractual obligations properly and paid the full amount for the goods.
Despite multiple notifications to the foreign supplier about the necessity to meet the contract's conditions within the shortest possible timeframe, the goods were not delivered in full.
In March 2023, the Ministry of Defense filed a claim with an international commercial arbitration, stating its relevant demands.
The international arbitration process concluded with a final arbitral decision in favor of the Ministry of Defense.
Consequently, the international arbitration awarded the Ministry of Defense over 2.2 million euros in favor of the claim and also ruled that annual interest continues to accrue daily until the supplier settles its debt with the Ministry of Defense.
It is worth noting that during the arbitration proceedings, the supplier partially satisfied the Ministry of Defense's claim in terms of penalty payment.
