A blow to procurement “schemes”: court punishes supplier of substandard equipment for the Armed Forces of Ukraine

15 June 19:43

The Kyiv Commercial Court issued a ruling in Case No. 910/14189/25, upholding the claim against MILICON UA LLC. According to the ruling, the company must pay 97.43 million hryvnia in penalties for supplying substandard products to the Ukrainian military.

This was reported by the Anti-Corruption Action Center, as reported by "Komersant Ukrainian".

MILIKON UA LLC won a tender to supply body armor worth UAH 217 million. The contract was signed on February 27, 2025, and delivery was to be completed by August 20 of that year. Despite timely delivery, the products did not meet quality standards. Specifically, the body armor used Chinese plates, was penetrable, and was poorly stitched. This led to a refusal to sign the goods acceptance certificates.

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Court Ruling

The case was heard in closed session at the request of a representative of the Defense Procurement Agency (DPA).

The government contract stipulated that the supplier would pay penalties for substandard products, which served as the basis for the court’s decision.

The Anti-Corruption Center reported on this decision, emphasizing its importance in the context of combating corruption schemes.

Businessman Timur Mindich is involved in this case; he attempted to influence the goods acceptance process by circumventing control procedures. A recording of a conversation between Mindich and then-Defense Minister Rustem Umerov confirmed these attempts.

As a reminder, on November 10, 2025, NABU conducted searches at Mindich’s residence and at the home of Justice Minister Herman Halushchenko. On the same day, it was revealed that a large-scale corruption scheme in the energy sector had been uncovered, and audio recordings of the suspects’ conversations were made public.The “Mindich Tapes” also contained discussions with MP Kucherenko regarding the stabilization of the embezzlement scheme at Energoatom.

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