Ukraine’s Defense Ministry simplifies rear-area purchasing rules to cut delays

For other rear-area goods, the ministry has set a ceiling: the expected procurement price may not exceed the indicative price by more than 10%.

The changes were approved in an updated Instruction on Planning Rear-Area Procurements.

According to the ministry, the new mechanism makes it possible to carry out purchases without unnecessary delays while preventing artificial price inflation and inefficient use of budget funds.

Deputy Defense Minister Mstyslav Banik said the ministry’s priority is to make sure the military receives what it needs on time, in the proper quality and at the best price.

Previously, before each procurement, the list of rear-area goods and prices had to be approved by the Defense Ministry. During that approval period, market prices could change.

As a result, the entire list often had to be reapproved, which could delay deliveries to the military.

The process is governed by the Instruction on Planning the Procurement of Certain Goods, Works and Services for Defense Purposes and Other Goods, Works and Services Needed to Ensure Security and Defense During Martial Law in the Rear-Area Supply Sector.

To remove bureaucratic delays caused by market price fluctuations, the ministry updated that instruction.

Under the new rules, if the price changes, goods can be procured at the new price without having to resubmit the entire list for approval.

Earlier, Tetiana Nikolayenko, deputy head of the Public Anti-Corruption Council under the Defense Ministry, said in an interview with Radio NV that about 30 contracts from the Defense Procurement Agency worth more than 45 billion hryvnias ($1 billion) had not been fulfilled on time.

Commenting on overdue accounts receivable totaling 45.8 billion hryvnias, Nikolaienko said the average arms contract is worth about 1.5 billion hryvnias ($33.5 million).