Changes in the defense procurement procedure

23 May 2023
Changes in the defense procurement procedure
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Cabinet resolution #494 of May 16, 2023 

Decision-maker: the Cabinet 

Status: in effect since May 16, 2023 

Who is affected: the Ukrainian Armed Forces, other military units, and law enforcement agencies 

Summary of the resolution: 

  • the resolution approves the procedure on how the state enterprise of the Ministry of Defense of Ukraine Defense Procurement Agency will use its funding allocated from the government budget for the procurement of defense goods, works, and services 
  • the Agency transfers budget funds for the purchase, modernization, and repair of weapons, military equipment, machinery, and goods. No more than 2.75% of the funding can be spent on the maintenance of the Agency and on banking, logistics, transport, and customs brokerage services. 

What is right: the defense procurement procedure is now more transparent. 

Background information: in June 2022, the Ministry of Defense created the state enterprise Defense Procurement Agency.