Vasil Kisil & Partners successfully represented the Lekhim Group of Pharmaceutical Companies in a commercial dispute over the fulfilment of a vaccine supply agreement for almost UAH 1 Billion

Attorneys from Vasil Kisil & Partners successfully represented Lekhim Joint Stock Company, one of Ukraine's leading pharmaceutical companies engaged in the development, manufacture, and sale of medicinal products, in a commercial dispute with the Medical Procurement of Ukraine State Enterprise.

The dispute between Lekhim and Medical Procurement of Ukraine arose from the fulfillment of a supply agreement for more than 1.9 million doses of the SARS-CoV-2 CoronaVac vaccine manufactured by Sinovac Biotech Ltd, a China-based biopharmaceutical company.

Lekhim and Medical Procurement of Ukraine entered into the vaccine supply agreement in December 2020 at the initiative of the Ministry of Health of Ukraine for almost UAH 1 billion. This was the first agreement in Ukraine for the supply of a COVID-19 vaccine, with the supply taking place in the first half of 2021.

Medical Procurement of Ukraine filed a claim against Lekhim in a commercial court seeking the recovery of fines and penalties totaling almost UAH 70 million, alleging that Lekhim failed to observe the vaccine delivery period.

The claimant insisted that Lekhim had delayed the delivery of the first and second shipments of the CoronaVac vaccine. In response, Lekhim denied any delay in delivery.

After reviewing the case, the commercial courts upheld the respondent’s (Lekhim’s) position by 97%, meaning that less than 3% of the claimed penalties were ordered to be paid.

The team of attorneys from Vasil Kisil & Partners who represented Lekhim Joint Stock Company included Andriy Stelmashchuk, Managing Partner and Attorney-at-Law, Yurii Kolos, Counsel and Attorney-at-Law, and Hanna Rud, Senior Associate and Attorney-at-Law.