O
Obtaining a force majeure certificate
Within the framework of its business activities, the client of Misechko & Partners Law Firm - DUOMIT GROUP LLC ordered flooring materials from a Turkish company on import terms for their further use in the construction of a residential complex in the Pechersk district of Kyiv.
In order to fix prices for construction materials, payment for their cost was made on a prepayment basis in December 2021.
However, with the beginning of the war in Ukraine, from February 24, 2022, the construction of the residential complex was actually suspended, which became the basis for suspending the process of supplying imported construction materials for the duration of martial law in Ukraine. Thus, the war in Ukraine made it impossible to timely and properly fulfill the obligations to supply construction materials under the foreign economic agreement.
At the same time, in accordance with paragraph 21 of the Resolution of the Board of the National Bank of Ukraine No. 5 dated January 02, 2019, the delivery of imported goods must be carried out within the terms specified in the contracts, but not later than the deadline for settlements, which is 365 calendar days from the date of advance payment.
The fact of violation of this requirement by a resident entails the application of a penalty for each day of delay in the amount of 0.3% of the value of the undelivered goods (the amount of unpaid money) (according to Part 5 of Article 13 of the Law of Ukraine "On Currency and Currency Transactions").
Considering the fact that the war in Ukraine is officially recognized as a force majeure, according to the letter of the Ukrainian Chamber of Commerce and Industry No. 2024/02.0-7.1 dated 02/28/2022, the only ground for suspending the accrual of penalties for late performance of a foreign economic agreement during the war is the relevant certificate of the Chamber of Commerce and Industry.
Exercising its right to obtain a certificate, Misechko & Partners Law Firm, on behalf of DUOMIT GROUP LLC, applied to the Kyiv Chamber of Commerce and Industry with a statement on the certification of force majeure circumstances that made it impossible to fulfill obligations, motivating the impossibility of supplying imported goods within 365 calendar days due to the war in Ukraine, to stop the accrual of penalties provided for by the Law of Ukraine "On Currency and Currency Transactions" for the period of martial law in Ukraine.
Having considered such an application, the Kyiv Chamber of Commerce and Industry issued a certificate of force majeure to "DUOMIT GROUP" LLC, which certified the fact that the war in Ukraine became the basis for the actual suspension of the supply of imported materials and, accordingly, the impossibility of fulfilling by "DUOMIT GROUP" LLC its obligations under the foreign economic agreement for the supply of such materials within 365 calendar days from the date of the first payment.
Legal support of the project was carry out by attorney at law Iryna Usichenko.