Ukraine's Ministry of Defense Wins $11M Judgment Against Shady Foreign Supplier

The Ministry of Defense of Ukraine has successfully won an almost UAH 400 million ($11 million) judgment against a foreign supplier of body armor and helmets.

The verdict, rendered by the International Court of Arbitration, compels the foreign supplier to reimburse the Ministry of Defense for defective goods. The combined value of the satisfied claims amounts to approximately $11 million, encompassing not only the product cost but also penalties, one year's worth of interest, and arbitration fees.

The Ministry of Defense had initially procured bulletproof vests and helmets from this foreign supplier for the Armed Forces of Ukraine at the onset of the full-scale invasion. While the initial spring and summer 2022 shipments met quality standards, subsequent deliveries during the fall and winter of the same year failed to pass ballistic tests, rendering them unfit for use, and subsequently rejected by the Ministry of Defense.

In response, the Ukrainian authorities demanded a refund for the subpar goods delivered without proper ballistic testing certification, along with associated penalties. However, the foreign supplier failed to comply with the demand, prompting the Legal Service of the Ministry of Defense to initiate legal proceedings in an international arbitration court. Their aim was to recoup the cost of the undelivered bulletproof vests and helmets, along with penalties and accrued annual interest.

The arbitration award dictates that the annual interest will continue to accrue on the value of the undelivered goods until the money is fully reimbursed.

In a related development from August, the press had previously reported on a Ukrainian lawsuit against Turkish fraudsters who were implicated in the scheme. These individuals were set to be sentenced, with four of the suspects facing over 26 years in prison and the remaining two up to 31.5 years.

The fraudulent group was tasked with supplying personal protective equipment and weapons to the Armed Forces of Ukraine. However, after Ukraine paid an initial installment of $5.1 million, they failed to deliver the promised goods, resulting in a criminal prosecution.