Defence Procurement
In the state budget for 2021, 27.5 billion UAH are designated for the purchase of goods and services for the Ukrainian army. These funds are to be spent within the framework of the state defence order (SDO) - a key element of the defence procurement system. The SDO is based on non-competitive procedures that date back to the pre-war and Soviet times. This system operates with excessive secrecy and bureaucracy, and the procurement procedures themselves are imperfect and outdated. A comprehensive review of the entire defence procurement system is needed to optimize providing the security and defence sector with the necessary goods and services.

NAKO was involved in developing new legislation regarding defence procurement. In particular, our experts participated in drafting Law №808-IX, which was adopted in 2020. It was designed to minimize corruption risks in the defence sector by ensuring open defence procurement procedures, increasing planning transparency, and introducing effective public and democratic civilian control. However, as of today, the law has not yet been properly implemented, as the ministries responsible for its implementation have not been able to provide everything necessary for its full operation.

Therefore, NAKO’s activities in this area are aimed at reducing the risks of corruption in the defence procurement system. We promote quality implementation of recently adopted legislation and carry out public monitoring of defence procurement. NAKO also supports the government in implementing key reforms and enhances the capacity of Ukrainian civil society to oversee procurement.
14 July, 2022
The Presidential Office proposed a mechanism for monitoring the arrival of weapons
Andriy Yermak, Head of the Presidential Office, informed about such an initiative.
25 February, 2022
What should Ukraine’s partners do to stop russian aggression - NAKO’s list of the key steps
NAKO has list of the key steps for Ukraine’s partners do to stop russian aggression
28 December, 2021
Radio sets instead of equipment: NAKO evaluated this year’s state defence order
This year, the Ministry of Defence (MOD) is unable to spend the annual defence budget as planned
14 December, 2021
Defence Minister commits to demonopolizing and enhancing procurement procedures
The procurement system of the Armed Forces of Ukraine will be amended in 2022.
29 November, 2021
NAKO: Ministry for Strategic Industries fills register of arms manufacturers by only 23%
As of the end of November 2021, the new Register of Participants in the Selection and Executors of State Defence Contracts contains information on only 62 companies.
11 November, 2021
What is the reason behind the failure to reform the national defence industry?
Details are provided in the official response to NAKO’s inquiry
5 November, 2021
NAKO: Ministry of Strategic Industries implemented a program to modernize the defence industry by only 9%
Implementation of state target programs of reforming and development of the defence industry” has spent 221 million UAH out of the planned  2.53 billion UAH
20 October, 2021
Corporate governance and defence procurement are two of the three most risky areas according to the NAPC
The National Agency on Corruption Prevention (NAPC) monitored about 3,000 draft documents proposed for consideration by the Verkhovna Rada and the Cabinet of Ministers.
6 October, 2021
NAKO and partners are conducting a survey of volunteers

NAKO, StateWatch, and the Defence Procurement Reform Project have prepared a questionnaire for volunteers who buy goods for service members.

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