The Ministry of Defense won arbitrations for over UAH 108 million
Kyiv • UNN
The Ministry of Defense won two international arbitrations totaling about UAH 108 million against foreign suppliers who failed to deliver the goods paid for under the contracts.
The International Arbitration Court has issued two awards that ordered the recovery of funds totaling USD 2.7 million (approximately UAH 108 million) in favor of the Ministry of Defense of Ukraine. This was reported by the press service of the defense ministry, UNN reports.
Details
It is noted that the decisions relate to foreign economic contracts for the supply of material property for the Armed Forces. According to the contracts, the Ministry of Defense fully fulfilled its obligations and paid for the goods on time. However, none of the foreign suppliers delivered the goods on time. Moreover, some contractors did not deliver part of the goods paid for under the contract.
In this regard, the defense ministry applied to international arbitration to recover the cost of the undelivered goods and penalties for late delivery.
The Ministry of Defense also demanded interest per annum for the use of funds.
The arbitration upheld the claims of the Ministry of Defense, and from now on, the funds for the undelivered goods are subject to immediate return to the Ministry. Moreover, the arbitration court ordered the foreign suppliers to pay interest, which continues to accrue on the funds until they are returned to the Ministry of Defense.
The Ministry of Defense of Ukraine monitors the fulfillment of obligations by suppliers to ensure that the Ukrainian army receives all types of supplies on time and of proper quality. At the same time, the Ministry of Defense takes all legal measures to protect its rights and interests in relations with unscrupulous suppliers,
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