The Ministry of Defence enhances oversight of non-lethal procurement

The Ministry of Defence of Ukraine is enhancing oversight of budgetary funds in defense procurement by introducing new prepayment rules under state contracts.

The Cabinet of Ministers of Ukraine has amended the procedure for the use of funds by the State Operator for Non-Lethal Acquisition (DOT), approved under Resolution No. 1142, dated November 3, 2023. 

According to the document, prepayments under contracts will be deposited into special non-budgetary accounts held by contractors, suppliers of goods, and service providers. These accounts, opened in the Treasury under their name, require prior approval from the Ministry of Defence. The updated procedure specifically outlines the regulations governing the opening and closing of such accounts.

For food procurement and supplies for military units, the prepayment period is set at up to three months, while for other goods, works, and services, it extends to six months.

The changes also introduce a stricter mechanism for overseeing expenditures. The use of funds will be strictly limited to the purposes defined in the contracts and must be accompanied by necessary supporting documents like acceptance certificates for goods, services, or completed works. Unspent prepayment amounts will be reimbursed to the ordering party.

The approved changes will enhance the transparency and effectiveness of public fund utilization in the defense sector, reduce the risk of improper use of financial resources, and strengthen oversight by government bodies. These measures will also enhance the transparency and efficiency of interactions among suppliers, contractors, and state procurement agencies.

“We are committed to maximizing the efficiency of fund usage allocated for the procurement needs of the Armed Forces of Ukraine. Through strengthened oversight and forward planning, we not only ensure process transparency but also aim to achieve outstanding results in budgetary resource management. In 2025, over UAH 67 billion is planned for allocation to non-lethal supplies. Procurements covering more than half of this budget have already been announced,” said Deputy Minister of Defence of Ukraine, Dmytro Klimenkov.

Glib Kanevskyi, Director of the Defence Ministry's Procurement Policy Department, states that the main goal is to uphold maximum transparency at every procurement stage by utilizing open tenders and maintaining consistent oversight of expenditures. “A vital component of this process is cooperation with all stakeholders to ensure that each contract is executed effectively and on time,” he said.