Defence Procurement

Defence procurement has become one of the most critical elements of Ukraine’s national security system during the full-scale war. In recent years, Ukraine has significantly increased defence spending and begun transforming the way the state procures weapons, equipment, and logistical supplies for the Armed Forces.

Historically, defence procurement was conducted through the State Defence Order (SDO) – a system based largely on non-competitive procedures inherited from the Soviet period. The SDO operated under extensive secrecy and bureaucratic constraints, which limited transparency, hindered market competition, and created corruption risks.

Since 2022, the Ukrainian government has begun restructuring this system. New specialised procurement agencies have been established within the Ministry of Defence to professionalise purchasing and separate policy-making from procurement operations. At the same time, wartime conditions have required temporary restrictions on transparency and the use of accelerated procurement procedures to ensure rapid delivery of critical capabilities to the front.

Despite these changes, significant governance challenges remain. Ensuring effective oversight, balancing operational secrecy with accountability, and creating competitive procurement markets for defence suppliers continue to be key priorities.

NAKO has played an active role in shaping defence procurement reform. Our experts contributed to the development of Law №808-IX “On Defence Procurement”, adopted in 2020, which introduced a new legal framework for transparent planning, competitive procedures, and democratic civilian oversight in the defence sector.

Today, NAKO focuses on supporting the implementation and further development of this framework in wartime conditions. Our work includes:

• monitoring defence procurement policies and institutional reforms;
• advocating for balanced transparency that protects both accountability and national security;
• analysing procurement risks and corruption vulnerabilities;
• supporting the development of competitive defence markets;
• strengthening the capacity of civil society and oversight institutions to monitor defence spending.

By promoting integrity and transparency in defence procurement, NAKO contributes to building a more effective and resilient defence sector capable of supporting Ukraine’s long-term security and integration with Euro-Atlantic institutions.