Swiss arbitration tribunal recovers $18 mln in favor of Ukraine's Defense Ministry in dispute with American company – Ministry of Justice
The arbitration tribunal of the Swiss Arbitration Centre has ruled in favor of Ukraine in a dispute with an American company and ordered it to return more than $18 million to the state budget of our country, the Ministry of Justice of Ukraine reports.
"A supplier under a contract signed at the start of Russia’s full-scale invasion was obliged to deliver a batch of artillery ammunition to the Ministry of Defense within a short timeframe. The Ukrainian side made 100% prepayment for the goods, but the supplier delivered only one-third of the ordered ammunition, with significant delays and other breaches of the contract," the ministry said on its website Friday.
The press service noted that the U.S. company insisted it had fulfilled the contract properly.
"As a defense, the company claimed that the contract had allegedly been amended and that the Ministry of Defense had supposedly agreed to cover the company’s additional costs for sourcing and purchasing ammunition caused by the supplier’s negligence and bad-faith performance. In addition, the defendant repeatedly attempted to accuse the Ministry of Defense of alleged procedural misconduct and evidence concealment," the statement said.
The court fully supported Ukraine’s position, rejecting all of the defendant’s objections, finding that it had breached its contractual obligations, and ordering the recovery of the paid funds along with penalties.
The Ministry of Justice of Ukraine represented the Ministry of Defense in the proceedings, coordinating the legal position and handling the case at all stages of arbitration. Legal consultations on Swiss law were provided by the international law firm Staiger Attorneys at Law Ltd.