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Ukraine's defense sector faces pivotal changes and challenges in its purchasing strategies. With the implementation of the DOT-Chain Defense system, Ukraine's Ministry of Defence allocated ₴1.9 billion to enhance drone procurement, ensuring strategic advantages on the battlefield. This expansion allows 50 more brigades to access cutting-edge equipment, totaling 180 units using this platform. Despite these advancements, issues persist, as highlighted by multi-million hryvnia fraud cases in drone and timber procurement. Efforts to streamline processes include simplified rules for unmanned systems and EW equipment acquisitions. Officials strive to combat corruption in defense procurement to bolster transparency and efficiency, optimizing resources for national security.

How is Ukraine improving its drone procurement strategy?

Ukraine is intensifying its drone procurement strategy through substantial investments and the DOT-Chain Defense system, allocating ₴1.9 billion to enhance the capabilities of its armed forces. By integrating more brigades and offering access to cutting-edge technology, the platform bolsters Ukraine's readiness and adaptability in modern warfare.

What are the primary challenges faced in Ukraine's defense procurement?

Ukraine confronts significant challenges, including high-profile corruption cases involving inflated pricing and procurement fraud. Issues such as these necessitate rigorous oversight and reform to ensure transparency and effective utilization of resources within the defense sector.

What steps are being taken to enhance transparency in Ukraine's defense purchases?

Ukraine is actively enhancing transparency by introducing stricter controls over procurement processes and implementing advanced systems like DOT-Chain. Additionally, partnerships with anti-corruption bodies aim to monitor and rectify procurement practices, ensuring ethical standards are met in defense-related transactions.

How does the DOT-Chain Defence system impact Ukraine's military capabilities?

The DOT-Chain Defence system significantly enhances Ukraine's military capabilities by providing streamlined access to critical equipment and technology, such as drones and electronic warfare systems. This technological infrastructure supports strategic operations and increases response efficiency in defense scenarios.

What is the government’s approach to handling procurement fraud?

Ukraine's government is taking robust measures against procurement fraud by collaborating with anti-corruption agencies to investigate and prosecute fraudulent activities. Strategies include revising procurement processes, strengthening legal frameworks, and ensuring accountability for mismanagement in defense acquisitions.

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News purchasing

MoD MoD procurement through SBGS resulted in UAH 26.5 billion in receivables and non-compliance with delivery deadlines worth UAH 1.7 billion - Zhelezniak. DOCUMENT The procurement of weapons for the Armed Forces of Ukraine through the State Border Guard Service from the Polish company PHU Lechmar Sp. z o.o. resulted in UAH 26.5 billion in receivables and UAH 1.7 billion in overdue deliveries. 3 049 5 Previously in trend: defense procurement MoD procurement through SBGSU

Ministry of Defence wants to buy mines from manufacturers who have failed to fulfil contracts before MoD plans to purchase large number of mines from manufacturers who failed to fulfil contracts - Civil Anti-Corruption Council The Ministry of Defence plans to order a large number of 120mm mortar shells from state-owned manufacturers that have repeatedly failed to fulfil their obligations. 4 752 47

Umerov In six months, Umerov has failed to dismiss Spetstechnoexport head Petrov, who failed to supply army with weapons worth UAH 25 billion – Shabunin In six months, Defense Minister Rustem Umerov has failed to fire the head of Spetstechnoexport, Oleksii Petrov, who failed to supply the army with weapons worth UAH 25 billion. 18 452 36

Supply of material property to Armed Forces of Ukraine SLO strengthens control over supply schedules of material property to Armed Forces The SLO significantly strengthens control over compliance with the production schedule of material property for the Armed Forces of Ukraine. The team of the procurement agency is increasing the number of visits to supplier companies. 392 2 Previously in trend: Supply of material property to Armed Forces of Ukraine

Britain to buy 30 million pounds worth of attack drones for Ukraine UK signs £30 million agreement for supply of strike drones to Ukraine The United Kingdom and the Anglo-American defense technology company Anduril have signed an agreement that will help the Armed Forces of Ukraine obtain more advanced attack UAVs to combat Russian aggression in the Black Sea. 4 492 11 Previously in trend: Supply of drones from allies

Defense procurement Almost UAH 500 billion to support army: Ministry of Defense modernizes defense procurement The Ministry of Defense of Ukraine is modernizing defense procurement in accordance with the best Euro-Atlantic practices and in order to strengthen cooperation with NATO in this area. 4 317 9 Previously in trend: defense procurement

Britain UK wants to speed up military procurement amid war in Ukraine The UK government promises to reduce bureaucratic red tape to speed up the procurement of military equipment. 1 123 2 Previously in trend: arms purchases by Britain

DPA denies Shabunin’s claims about absence of ammunition contracts DPA denied information about lack of ammunition contracts The Defense Industry Agency has denied claims that there are no contracts for the purchase of ammunition for the Armed Forces. 3 298 10 Previously in trend: Purchases of the DPA

Products for the Armed Forces of Ukraine Digital control of products for AFU is being implemented – Ministry of Defense The Ministry of Defense of Ukraine is introducing a new system of control over the supply of canned food for the Armed Forces of Ukraine. 761 5

Drone procurement Government allocates another 7.9 billion UAH for purchase of drones - Shmyhal Today, on February 21, the Government is deciding to allocate another UAH 7.9 billion for the purchase of drones. The necessary purchases will be made by the State Service for Special Communications and Information Protection. 555 10

UAV operator call sign Luh Some manufacturers win ProZorro tenders because they put terrible cheap cameras on FPV drones, - UAV pilot Luh. VIDEO A UAV pilot from the "Dovbush Hornets" unit talks about the shortcomings of drone suppliers to the Armed Forces. 30 595 42

Ukraine automates drones with AI for effective defense Ministry of Defense launches new model for providing Armed Forces with UAVs, in particular, introduces DOT-Chain system in procurement The Ministry of Defense of Ukraine is introducing a new model for providing drones. The Defense Procurement Agency (DPA) has presented manufacturers with new rules of interaction between the state, the army and business. 2 138 10

SBI Supply of substandard helmets worth UAH 36 million to State Border Guard Service: Director of company and commander of military unit to be tried - SBI SBI officers have completed an investigation into the director of a company that supplied the State Border Guard Service with low-quality ballistic helmets worth UAH 36 million. 3 562 12

Shmyhal discusses defense cooperation and sanctions against Russia with Lithuanian Seimas Ukraine to allocate record UAH 739 billion for weapons production and procurement in 2025 – Shmyhal The Ukrainian government has planned a record budget of UAH 739 billion for weapons production and procurement programs in 2025. 1 346 24

Commander of a military unit in Lviv region is served a notice of suspicion for purchasing beds at inflated prices UAH 8.5 million in losses to state: Commander of military unit in Lviv region purchased beds for military at inflated prices - SBI. PHOTO The State Bureau of Investigation has served a notice of suspicion to the commander of a military unit in the Lviv region, who in 2022 purchased beds for the military at inflated prices without proper procedures. 13 408 17

SBI exposes group that seized UAH 101 million in procurement for military More than UAH 101 million was stolen in procurement for military: SBI exposed organised group. PHOTOS Officials of the Housing and Maintenance Department of Luhansk, which is part of the Armed Forces of Ukraine's logistics system, and their accomplices were served a notice of suspicion of embezzling UAH 101 million during the procurement of fuel wood for the needs of the Armed Forces. 6 805 16

Commander of military unit caused damage to state Commander of military unit caused UAH 12 million in losses to state by purchasing fuel tanks. He will be tried - SBI. PHOTO SBI officers completed a pre-trial investigation against the commander of a military unit in the Kirovohrad region, whose negligence caused the budget to lose almost UAH 12 million. 9 256 14

Ministry of Defense Ministry of Defense assured that situation around DPA did not affect supply of weapons to AFU The Ministry of Defense assured that the situation around the Defense Procurement Agency (DPA) did not affect the quality of weapons supplies to the AFU. 717 20

Koliubaiev Yermak’s business partner Koliubaiev received billions of dollars in contracts for drone production from MoD, - journalist Nikolov During the full-scale invasion of Ukraine by Russia, Artem Koliubaiev, a film producer and business partner of the head of the Presidential Office, became a co-owner of Culver, one of the largest suppliers of drones to the Ukrainian Armed Forces. 44 138 93

Transfer of UAH 23 billion to State Border Guard Service for ammunition. NABU opens proceedings NABU launches proceedings on transfer of UAH 23bn to SBGS from MoD for ammunition purchase - sources The NABU has launched proceedings over the transfer of 23 billion to the State Border Guard Service from the Ministry of Defence for the purchase of ammunition. 5 502 12

Journalists appeal to Verkhovna Rada on corruption scandals with weapons Journalists and activists ask MPs to help deal with corruption scandals with weapons Journalists, volunteers and public figures are appealing to the parliamentary committees on national security and defence and the anti-corruption committee to hold open committee meetings on the arms supply scandals that erupted at the end of last year. 3 088 18

Ministry of Internal Affairs Former top Interior Ministry official suspected of fraudulent procurement of equipment and bribery with cars The NABU and the SAPO exposed a former top official of the Ministry of Internal Affairs on a large-scale scheme of embezzlement of budget funds and bribery. He is suspected of fraudulent purchases of equipment and receiving premium cars worth more than UAH 6 million. 6 211 12 Previously in trend: Fighting corruption in Ukraine

Businessman detained for supplying low-quality clothing to Armed Forces of Ukraine Lviv businessman and his criminal organization supplied low-quality clothing to Armed Forces of Ukraine worth over UAH 1 billion: indictment sent to court - SBI. PHOTOS The State Bureau of Investigation jointly with the State Audit Service completed a pre-trial investigation against a Lviv businessman and his criminal organisation that supplied low-quality military equipment to the Armed Forces of Ukraine. 6 290 12

DPA managed to reduce average price of shells Average price of shells in defence contracts decreased by 15-23% - Bezrukova The average price of shell contracts concluded by the Defence Procurement Agency has decreased, saving billions of hryvnias. 1 891 9 Previously in trend: Defense

AntAC on the Defense Ministry: Umierov destroys defense procurement reform Defense Ministry destroyed main anti-corruption reform in defense procurement and brought UAH 550 billion under its manual control - AntAC At the end of December 2024, Defence Minister Rustem Umerov made illegal amendments to the charters of the Defence Procurement Agency (DPA) and the State Logistics Operator (DOT), which took control of UAH 550 billion. These changes undermined the defence procurement reform that took place after the dismissal of his predecessor, Oleksii Reznikov. 12 070 75

Purchase of dry rations DOT announces bidding for purchase of 1.7 million sets of dry rations for AFU in 2025 The Defense Ministry's procurement agency DOT has announced a tender for the purchase of 1.7 million sets of dry rations for the Ukrainian military in 2025 524 2

Umierov destroyed the main anti-corruption reform in the defense sector Umierov destroyed main anti-corruption reform in defense sector by amending charters of DPA and DOT - Shabunin Defense Minister Rustem Umierov has amended the charters of the Defense Procurement Agency (DPA) and the State Logistics Operator (DOT), which undermine the entire essence of the defense procurement reform, which was launched after the scandal with " eggs for 17" under former Defense Minister Oleksii Reznikov. 13 353 86 Previously in trend: Defense

Rustem Umierov Explanation of MoD on purchase of ammo worth UAH 23 billion without participation of Defense Procurement Agency is outright deception- Shabunin The Ministry of Defence of Ukraine's official explanation for the need to use UAH 23 billion to purchase weapons without the Defence Procurement Agency is an outright deception. 12 016 77

SBGS was allocated UAH 23 billion for procurement: they explained why SBGS explains why it was delegated procurement for UAH 23 billion The State Border Guard Service explained why they were delegated UAH 23 billion for procurement. 6 254 32

Additional funds will be allocated for purchase of UAVs Ministry of Defence will allocate UAH 1.1 billion for purchase of UAVs. Funds will go directly to brigades, - Shmyhal An additional UAH 1.1 billion was allocated for the purchase of UAVs. The funds will go directly to the brigades. 745 8

Ministry of Defense will transfer UAH 23 billion to State Border Guard Service Ministry of Defense gave UAH 23 billion to Polish company, although DPA reported on risks - Zhelezniak. DOCUMENT The Defense Procurement Agency reported to the Ministry of Defense on the risks with PHULechmar Sp.z.o.o., but the ministry still decided to send it UAH 23 billion with a 100% advance payment. 13 781 40

UAV, drones UAH 87 billion allocated for UAVs procurement in 2024, including UAH 59 billion for long-range ones – Defense Ministry In 2024, the Ministry of Defense allocated UAH 87 billion for the purchase of unmanned aerial vehicles, including UAH 59 billion for long-range deepstrike drones. 1 368 9

Mayor of Netishyn suspected of official negligence Mayor of Netishyn is suspected of negligence in office over drone procurement. DOCUMENT The mayor of Netishyn, Khmelnytskyi region, was suspected of negligence in office for purchasing low-quality FPV drones. 4 778 15 Previously in trend: War

Rustem Umerov Defence Ministry’s decision to transfer 23 billion to SBGS is outright sabotage and rollback of legal procurement reform - Kaleniuk By deciding to transfer UAH 23 billion to the State Border Guard Service for the contracting of ammunition, the Ministry of Defence of Ukraine "signed its own complete failure". 8 573 40

state border guard service SBGSU on allocation of UAH 23 billion to it: Please, do not speculate on mentioned topic and avoid manipulations The State Border Guard Service of Ukraine commented on the delegation of authority to purchase defence goods for the needs of the Ukrainian Defence Forces and called for no speculation on this topic and to avoid manipulation. 4 883 13

purchase of shells from a Polish company Polish shell company, claiming 100 billion for weapons, has already disrupted two contracts 23 billion of budget money for arms contracting may be given to the Polish intermediary company PHU Lechmar. 38 708 27

23 billion transferred to SBGS Defence Ministry took 23 billion from DPA to contract shell company On 29 November, the Cabinet of Ministers of Ukraine adopted Resolution No. 1191-r, which allocated UAH 23 billion for the purchase of shells for the State Border Guard Service. 10 731 27

Position of procurement officer will be created in military units Position of purchaser will appear in military units of Armed Forces of Ukraine - military procurement expert Silvestrov A new position of procurement officer will be introduced in the military units of the Armed Forces of Ukraine. 3 169 25

Embezzlement in the procurement of clothing for the Armed Forces of Ukraine Fraud for $10 million in procurement of uniforms for AFU: Former Defense Ministry advisor and People’s Deputy suspected. VIDEO&PHOTOS A scheme to embezzle more than $10 million for the purchase of military uniforms for the Armed Forces of Ukraine has been exposed. A former advisor to the Ministry of Defence, a former People`s Deputy and his son are suspected of the fraud. 8 455 30

забезпечення,виплати,грошове,бойові Cabinet of Ministers transferred all revenues from "military personal income tax" to military units by end of year The Cabinet of Ministers has transferred revenues from the so-called "military personal income tax" to the Armed Forces of Ukraine in the fourth quarter of 2024. 10 0

Кабмін включив Командування Сил безпілотних систем до переліку державних замовників дронів та засобів РЕБ Government included Unmanned Systems Forces in list of state customers for drones and electronic warfare equipment The Cabinet of Ministers has included the Command of Unmanned Systems Forces in the list of state customers of drones and electronic warfare equipment purchased through the Ministry of Defense and the State Special Communications Service. 500 5

Голова ДОТ Арсен Жумаділов про концепцію закупівлі дронів DOT proposes to turn drone procurement into "electronic supermarket" where brigades will be buyers The State Logistics Operator has proposed a concept of how to restructure the processes in the procurement system for drones and other similar products. The procurement is to be integrated into the DOT's IT system called DOT-Chain. 1 559 20

військові,харчі "Logistics Operator" carried out first procurement of food under framework agreements The State Enterprise "State Logistics Operator" (DOT) of the Ministry of Defense has made the first purchases of food under framework agreements and signed two contracts for the purchase of food for the military. 10 0

неякісні консерви для ЗСУ DOT was unaware that military were eating low-quality canned food - there were no complaints before the journalists’ investigation The State Logistics Operator has not received any official complaints about the quality of canned food, as described in an investigation by NGL.media journalists. 7 113 38

закупівлі у Міноборони Military may continue to receive low-quality meat due to price dumping by some suppliers of Ministry of Defense The military may continue to receive low-quality meat due to price dumping by some suppliers of the Ministry of Defense. 2 432 23

Дніпро, посадовець, розтрата He procured Starlink at inflated price: official in Dnipro is suspected of embezzling UAH 1.8 million of budget funds. PHOTO An official of a Dnipro city council utility company is suspected of purchasing Starlink for schools at inflated prices. 2 732 21

Данія Denmark to allocate more than $628 million to purchase weapons for Ukraine from Ukrainian defense industry Denmark and Ukraine have agreed to invest DKK 4.2 billion ($628 million) in the Ukrainian defence industry. 1 375 8

На Дніпропетровщині ДБР викрило масштабну оборудку під час закупівлі одягу для військових Low-quality clothing for AFU worth UAH 200 million was purchased: Large-scale fraud was uncovered in Dnipropetrovsk region - SBI. PHOTOS The State Bureau of Investigation served a notice of suspicion to the commander of a military unit in Dnipropetrovsk region and the head of a private company who organised the purchase of low-quality clothing for military personnel worth UAH 200 million. 5 733 25