The State Logistics Operator plans to impose sanctions on suppliers of the Armed Forces who do not fulfil their contractual obligations. This was reported by the press service of the State Logistics Service.
The restrictive measures include a ban on establishing business relations with the State Logistics Agency in the future, which effectively means disqualification of suppliers from further procurement.
The maximum term of such sanctions is 1 year from the date of the relevant decision by the commission. The State Defence Enterprise is convinced that this will be an additional motivation for suppliers to fulfil their responsibilities in supplying the Armed Forces of Ukraine.
Who may be subject to sanctions:
- Violators of anti-corruption or sanctions legislation;
- Suppliers of counterfeit or low-quality products;
- Companies with poor delivery performance (SLA);
- Suppliers providing false or forged documents for goods.
The sanctioning procedure will be conducted by a two-tiered commission with the possibility of appeal. The first commission assesses the validity of the restrictions, and the second considers appeals from suppliers.
Suppliers have the right to appeal within 5 business days of the decision. The DOT notes that it has a successful case law on the legality of such sanctions, which allows it to refuse future contracts and disqualify violators from procurement.
