Ukraine def min reclaims $11m from supplier of bulletproof vests, helmets

An international court of arbitration has ordered a foreign supplier to return almost UAH 400 million (USD 11,15 million) to the Ukrainian ministry of defence for low-quality goods, the ministry said in a statement.

The total amount of the satisfied claims is approximately EUR 10 million and includes, in addition to the cost of the goods, penalties, interest for a year and arbitration fees. Since the contract is a foreign economic agreement, the amount of obligations is in euros.

At the beginning of Russia’s full-scale invasion, the Ukrainian defence ministry purchased bulletproof vests and helmets for the Armed Forces from the foreign supplier in question.

"During the spring and summer of 2022, the supplier delivered goods of good quality. However, the next batches, which arrived in the autumn and winter of 2022, did not pass ballistic tests, and the ministry of defence did not accept them," the statement said.

The Ukrainian side demanded that the supplier refund the money for the goods supplied without confirmation of ballistic testing and pay penalties. The supplier did not comply with the request.

The ministry of defence's legal department filed a lawsuit in an international arbitration court to recover the cost of the undelivered bulletproof vests and helmets, penalties, and annual interest.

According to the arbitration award, annual interest continues to accrue on the value of the undelivered goods until the money is returned.