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LCF Law Group files a lawsuit against the State Customs Service of Ukraine

LCF Law Group representing the interest of the All Ukrainian Network of People Living with HIV/AIDS (PLWHA), files a lawsuit against the State Customs Service of Ukraine on protection of business reputation in the Commercial Court of Kyiv to the value of UAH 15.196 million. PLWHA intends to redress the damages caused by unlawful detention of medicines by SCSU and the false charges of smuggling against organization and its partners. “The extent of the claim can increase multiply if Ukraine doesn’t receive the next tranche of assistance from the Global Fund to fight AIDS in the amount of USD 300 million. We are in the final stage of negotiation”, Anna Ogrenchuk, the managing partner of LCF Law Group said at a press conference in Kyiv on Wednesday.

The problem arose in the middle of July when the Yagotynsky customs service took in custody the charity cargo – the ALUVIA medicine for treating 5000 people with HIV infection to the value of UAH 15.196 million. The medicines were purchased at IDA HIV/AIDS Group (IDA) by PLWHA financed under the Global Fund to fight AIDS as non-repayable aid to Ukraine.

"These preparations are imported to Ukraine regularly. Until the end of 2009 the cargo was formed as humanitarian aid and went through relevant authorities in the state agencies. It was however decided to import the medicines as a commercial cargo after several attempts to get a bribe by officials. The customs formalities were even simplified because of duties and other taxes on these medicines weren’t in fact imposed ", Vladimir Kurpita, the executive director of PLHIV said.

IDA made a clerical error during the July delivery – the medicines were declared as “humanitarian aid” instead of commercial cargo. Of course, the error was found very quickly, IDA sent a new invoice to SCSU, moreover it was ready to pay a fixed penalty.

However, Customs didn’t show understanding for IDA's position and initiated a smuggling case.

"The Customs wrongly accused our client of funds transfer to the "black accounts", although IDA and PLHIV are well-known organizations, actively collaborated before with the Ministry of Health and SCSU as well. And what is more, the Customs Service spread misleading information that medicine costs the State Budget UAH 30 million, but in fact the State Treasury didn’t allocated any penny for their purchase "- Anna Ogrenchuk said.

According to her words, there must exist an infringer's intention for the initiation of criminal case of smuggling by the law. IDA and PLHIV have since acknowledged inaccuracies and were ready for cooperation with SCSU, consequently there was no intention."The current situation must be considered nothing more than an administrative violation. But because of the case is qualified as a criminal, we can expect that legal investigation may be delayed for at least three months. In this case, if the medicines won't be delivered in the hospitals until 15 August, 5000 people will be deprived of opportunity for treatment and survival",  Mrs. Ogrenchuk added.

Moreover, she made the point that Ukraine is on the verge of signing a new $300 million grant with the Global Fund. And if the conflict over the July supply of medicines won’t be resolved in favor of HIV patients and the contract will be avoided, PLHIV has to increase the extent of the claim in accordance with the losses by termination of cooperation with the Fund.