PRAGNUM continues to strengthen its MilTech practice

PRAGNUM has been engaged to represent an unmanned aerial vehicles (UAV) supplier in a dispute with the Defence Procurement Agency of the Ministry of Defence of Ukraine concerning defence contracts with a total value exceeding UAH 1 billion.

During the performance of the contracts, the client was affected by force majeure circumstances. The disruption of global supply chains caused by the blockage of the Strait of Hormuz resulted in delays in the delivery of critical components required for UAV manufacturing, ultimately affecting the production and delivery schedule under the contracts.

Despite these circumstances, the Defence Procurement Agency initiated several court proceedings seeking to recover contractual penalties from the client.

The client remains committed to fulfilling its contractual obligations and continuing deliveries essential to Ukraine's defence capabilities. At the same time, the enforcement of contractual penalties would impose a substantial financial burden, potentially disrupting production and threatening the client's ongoing operations.

PRAGNUM's legal team is currently developing a comprehensive litigation and dispute resolution strategy aimed at protecting the client's interests and preventing the recovery of contractual penalties, as the contractual delays resulted from force majeure events beyond the client's control.