Ukraine to Receive CoronaVac by the End of May or Lekhim will Refund a Billion

On December 30, 2020, Ukraine made an advance payment in the amount of 964.3 million UAH for 1.9 million doses of the China’s CoronaVac vaccine against Covid-19. The contract was entered into by the state-owned Medical Procurements and private Lekhim company. The terms and conditions of the contract specified 100% advance payment to be repaid in full in the event the term of delivery is delayed.

This is reported on by StateWatch expert organization which has analyzed the terms and conditions of the supply contract.

The final delivery term is May 31 of 2021.

The procedure for settlement specified 100% advance payment within 3 banking days from the moment the supplier provided a banking guarantee to return the advance payment. In other words, in the event Lekhim breaches the contractual terms and conditions the bank must refund the total amount to the state budget upon request of the applicant.

The first delivery of the vaccine in the amount of 700 thousand dozes is expected not later than March 31, 2021, within 30 calendar days after a date on which the product is either registered by one of competent bodies of the USA, Great Britain, Switzerland, Japan, Australia, Canada, China, Israel, India, Mexico, Brazil or EU, or recharacterized by the WHO.

The second delivery of the vaccine in the amount of 1.2 million dozed is expected within 90 calendar days from the date of the product registration, but not later than May 31, 2021.

If Lekhim Group fails to provide all the vaccine, the bank must refund 100% of the advance payment to the government-owned Medical Procurements company. The parties may also sign supplementary agreements to prolong the term of delivery of the vaccines to Ukraine.

The contract also provides for contractual penalty for delay in delivery of the vaccine, namely late fee at the rate of 0,1% of the value of the product the term of delivery of which was exceeded for each day of delay. If the term of delivery is exceeded for more than 30 days, an additional penalty at the rate of 7% of the value of the product the term of delivery of which was exceeded is specified.

As a reminder, StateWatch earlier informed that Ukraine was seeking to buy up the CoronaVac vaccine, which had been developed by the Chinese Sinovac Biotech company, through Brazil. The state Butantan institute located in São Paulo is a partner on the Brazilian side. Its testing in Brazil was launched at the end of July of 2020.