Ukraine won a billion-dollar arbitration with Firearms: why the weapons were never received.

According to inkorr.com: Weapons instead of shells: Ukrainian contract with an American firm

In 2022, the American company Firearms signed a contract for the supply of weapons to Ukraine worth nearly one billion dollars. However, the obligations were not fulfilled, and the equipment and ammunition never reached the customer, even despite receiving an advance of 17 million euros.

Problems with the contract

Firearms, registered in Arizona, turned out to be unprepared for international arms trade and lacked sufficient resources to execute the contract. Ukraine expected to receive anti-aircraft shells, rockets for the 'Grad', and mortar shells, but in fact received only promises.

Firearms explained the failure to deliver as supposedly 'payment delays' and issues with obtaining export permits, blaming Serbia for blocking supplies 'for political reasons'.

Court process and arbitration

When the case went to arbitration, in 2024 Ukraine received a ruling in its favor, which stipulated the return of the advance of 17 million euros with interest and penalties. However, Firearms refused to comply with the ruling, prompting Ukraine to file a complaint in an American court. The total debt exceeded 20 million euros, and the company Firearms has practically ceased to exist at this point.

Thus, the billion-dollar contract for the supply of weapons turned out to be a failure. Although Ukraine managed to recover the advance, the company never complied with the court's decision and remained inactive, highlighting the difficulties in international defense agreements.