Ilyashev & Partners Law Firm successfully protected interests of the Ukrainian state exporter of military equipment in an arbitration dispute with a foreign supplier.

As a result of the coordinated work of Ilyashev & Partners, the Vienna International Arbitration Centre (VIAC) ruled in favor of the Ukrainian state company and ordered the foreign supplier to pay a contractual penalty and to return more than EUR 1 million for substandard military goods.

Despite the state company's proper fulfillment of its obligations under the contract, the foreign company delivered goods of improper quality, which could not be used for their intended purpose and could never be transferred to the Ukrainian Armed Forces under any circumstances. The foreign supplier refused to replace the goods with goods of proper quality or to refund the money paid.

As part of an arbitration claim against the foreign supplier, Ilyashev & Partners appealed to VIAC for repayment of the purchase price and payment of a penalty. Through the efforts of Ilyashev & Partners' international arbitration practice team, it has been proven that the supplier violated the concluded contract significantly and did not fulfill its obligations regarding the quality of the products and supplies and was failing to meet the needs of the Ukrainian military.

The Vienna International Arbitration Center agreed with the arguments of the lawyers of Ilyashev & Partners and ordered the foreign supplier to return to the Ukrainian state company the advance payment, statutory late payment interest, contractual penalties, and the arbitration costs.

The Ilyashev & Partners' project team was led by Roman Marchenko, Senior Partner, and included Counsels Marina Riashchenko and Roman Protsyshyn, as well as Lawyers Mykhailo Churakov and Kateryna Solodovnyk.