The Ministry of Defense won the case of “Lviv Arsenal”, which was supposed to supply 100,000 mortar mines

The Ministry of Defense won the court for more than 1.5 billion hryvnias in the case of Lviv Arsenal LLC.

In October 2022, the Ministry concluded a contract for the purchase of 100,000 mortar mines. The state paid almost 100% of the amount in advance. The first mines were supposed to arrive in a month, but this did not happen after six months or a year.

A few months before the agreement with the Ministry of Defense — in August 2022 — Lviv Arsenal signed a contract with the Slovak company Sevotech. It was Sevotech that was supposed to bring 100,000 mines to Ukraine for almost 1.5 billion hryvnias. "Lviv Arsenal" had only to receive funds from the Ministry of Defense and transfer them further, keeping 3% for itself — exactly as much as the government of Ukraine allows.

The actual scheme of the agreement was as follows: Ministry of Defense of Ukraine — Lviv Arsenal (Ukraine) — Sevotech (Slovakia) — WDG (Croatia) — Elmech Sintermak (Croatia).

In this contract for 100,000 mines, Sevotech, like Lviv Arsenal, was only a spacer. In other words, I just had to transfer the money to the Croatian company WDG promet, with which Sevotech had a contract.

But WDG is actually not a manufacturer either. This company was supposed to buy ammunition for Ukraine at the Croatian Elmech Sintermak plant. Thus, in one contract between the Ministry of Defense of Ukraine and a real arms manufacturer, there were as many as three spacers, and their task was only to receive funds.

Now LLC "Lviv Arsenal" has to pay the MOU 1,340,465,698 hryvnias of advance payment, 90,683,623.06 hryvnias of penalties and 96,734,638 hryvnias of fines for non-delivery of paid mines.

As part of this case, the accounts and other movable and immovable property of the LLC were seized.