Inefficiency of procurement system is jeopardizing supply of 155-mm ammunition to Armed Forces, - "Ukrainska Pravda"
Ukraine’s procurement system for artillery ammunition poses additional risks to the timely delivery of long-range 155-mm shells to the Defense Forces. One of the key problems remains the excessively short terms of government contracts.
This is reported in an article by "Ukrainska Pravda. Oboronka," which interviewed Ukrainian arms manufacturers, military personnel, and representatives of the defense sector," according to Censor.NET.
Details
According to the publication, the tender for long-range artillery shells in 2026 was held only on the eve of summer, even though the companies are required to deliver the products by the end of the year. Thus, manufacturers were given about seven months to contract for components and manufacture some of the most scarce artillery munitions on the global market.
The situation is particularly acute with regard to propellant charges for long-range artillery rounds. The production capacities of the world’s leading suppliers are fully booked for years to come.
"The gunpowder market is a seller's market right now. It's a product that's in high demand all over the world—there's a huge line for it. And if you want to be at the front of the line now, you should have thought about it last year. And you should have started planning for next year’s supply back in March," one ammunition manufacturer told "UP."
The situation is further complicated by the sharp rise in the cost of components for long-range rounds. According to another source involved in the production of artillery ammunition, the cost of the necessary gunpowder has increased significantly since the start of the full-scale war.
According to him, the price of long-range gunpowder can now reach $300 per kilogram, compared to about $30 before the start of the major war. At the same time, Ukraine does not have its own production of long-range gunpowder, which makes manufacturers dependent on the global market.
Manufacturers cite contracts with deadlines of December 31 as another systemic problem. These deadlines leave companies little time to procure large batches of components or respond to potential supply disruptions, missile strikes on production facilities, or other force majeure events.
Currently, the Defense Procurement Agency is preparing to hold another tender for artillery ammunition. Market representatives fear that deliveries under this tender may also be required to be completed by the end of 2026.
According to manufacturers surveyed by the publication, under such conditions, no contractor may be able to fulfill the contract within the specified time frame.
The issue of short-term contracts extends beyond ammunition. Complex defense products have a long production cycle, so manufacturers need a planning horizon of at least 12–18 months.
The Ministry of Defense previously announced the introduction of long-term contracting; however, according to UP’s assessment, this mechanism does not function systematically in practice.
As a result, manufacturers are forced to use their own profits to pre-order components and, in effect, begin production even before receiving a government contract. Industry representatives emphasize that these funds could be directed toward product development or the creation of reserve production capacity.
