Ukraine’s Armed Forces have officially launched a major reform that Defence Minister Mykhailo Fedorov describes as the transformation of the Defence Forces. The initiative introduces sweeping changes to military management, defence procurement, personnel policy, and the military pay system.
The first steps of the reform are analysed by NAKO researcher Oleksandr Veherzhynskyi in his op-ed for Censor.NET.
According to the Minister, the new approach is built around digital tools, Big Data analytics, and management principles commonly used by leading technology companies.
One of the first outcomes has been the overhaul of defence procurement. Following an internal audit, the Ministry of Defence discontinued a number of inefficient procurement practices and began shifting weapons procurement to competitive tenders through the Prozorro e-procurement system. In May alone, this approach reportedly reduced the expected cost of procuring 155 mm artillery shells by more than 16%.
The savings are expected to finance a new military pay model, under which compensation will be linked to the level of personal risk and responsibility.
Beginning in July 2026, the Ministry will also introduce new contract options lasting 6, 10, 14, and 24 months. Maximum monthly compensation for assault troops will increase to UAH 460,000, with additional bonuses for time spent on frontline positions and successful advances. Frontline infantry personnel will be eligible to earn up to UAH 300,000 per month, while salaries for corps and brigade commanders will increase substantially. At the same time, the guaranteed minimum monthly pay for personnel serving in rear-area roles will rise to UAH 30,000.
Another pillar of the reform focuses on personnel management. The Ministry plans to introduce automatic transfers between units within corps structures and launch the Mission Control system, which will track the actual time service members spend on the frontline and assess the quality of logistical support they receive. A simplified mechanism will also be introduced to allow service members who left their units without authorisation before 12 June 2026 to return to military service.
According to the NAKO researcher, the proposed model resembles the management approach of a technology company, combining clear performance indicators, financial incentives, and resource optimisation. At the same time, the reform has already raised a number of concerns.
Among the key risks are dissatisfaction among rear-area personnel over their level of compensation, the absence of a comprehensive solution regarding the length of service for those who have been fighting since 2014 or 2022, and limited opportunities for public oversight due to wartime restrictions on access to information.
Fedorov has stressed that these measures represent only the first phase of the broader transformation. According to him, the reforms are primarily aimed at addressing long-standing structural problems within Ukraine’s Armed Forces.