About 30 defense procurement contracts worth over UAH 45 billion were delayed

Nation

18 August, 11:29 AM

About 30 contracts with Ukraine's Defense Procurement Agency worth more than UAH 45 billion were not fulfilled on time, Tetiana Nikolaienko, deputy head of the Defense Ministry's Public Anti-Corruption Council, told Radio NV on Aug. 18.

Commenting on Radio NV on UAH 45.8 billion ($1.1 billion) in overdue accounts receivable, Nikolaienko said the average weapons contract is worth about UAH 1.5 billion ($36 million).

“We can say that roughly 30 contracts were not completed on time. Accordingly, the question now is not only whether we will recover these funds, because in fact only part of the money has been paid. At least we no longer pay 100%, as was the case in previous years. There are some advance payments, but they are no longer as large. But we have to understand that a certain number of contracts were not fulfilled. And that raises questions,” said the deputy head of the Defense Ministry’s Public Anti-Corruption Council.

According to her, the Defense Procurement Agency has a register of suppliers, and weapons should now be ordered directly from manufacturers rather than through intermediary companies.

“Accordingly, if that is the case, then there are questions for the Defense Procurement Agency’s management about whether contracts were signed on time. What caused these contracts not to be fulfilled? What led to these accounts receivable? We need to understand this. We need an honest dialogue about it,” Nikolaienko said.

She also said that for more than a year, the Defense Procurement Agency has responded to all requests from the Defense Ministry’s Public Anti-Corruption Council regarding accounts receivable by saying only that the information is restricted.

Defense Procurement Agency accused of delays in purchasing 155 mm rounds

On April 29, defense manufacturer Ukrainian Armor called on the Defense Ministry to resolve the issue of signing contracts for long-range ammunition with proven suppliers.

The company said that in January, the General Staff of the Armed Forces of Ukraine and the Defense Ministry planned procurement for 2026 and prioritized the purchase of long-range 155 mm rounds.

“Today is April 29, 2026. The Defense Procurement Agency has still not signed a single contract for the supply of 155 mm rounds. Such a delay can only be explained by behind-the-scenes maneuvering to select the ‘right’ suppliers,” Ukrainian Armor said.

The statement also said the Defense Procurement Agency was contracting the “cheapest” offers from companies that had not demonstrated their ability to supply or manufacture the ammunition.

Ukrainian Armor said it had fulfilled 100% of its commitments to supply the Defense Ministry with 155 mm rounds of various ranges since the start of Russia’s full-scale invasion. Meanwhile, suppliers contracted by the Defense Procurement Agency have missed delivery deadlines, the company said.

Ukrainian Armor said that at the time, actual fulfillment of contracts for the supply of 155 mm ammunition ranged from 30% to 50%, depending on the period.

The Defense Procurement Agency responded that the procurement process for 155 mm artillery rounds was ongoing and that no final decision had been made on selecting a contractor for state contracts.

The agency also said the company’s claims “indicate risks of information leaks related to the procurement process, as well as possible attempts by third parties to influence the outcome of the procurement.”

The Defense Procurement Agency said it would launch an internal investigation into how the company obtained confidential procurement information and whether there had been attempts to influence the procurement process.

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