Information current as of 7 July 2026.

Key Findings

• The Verkhovna Rada adopted amendments to the State Budget for 2026 under the EU credit package worth EUR 90 billion. The first tranche – EUR 45 billion – includes EUR 31.8 billion earmarked for defence and security.
• The Ministry of Defence (MoD) launched the pilot stage of the “Basic Level” project – a model of guaranteed monthly drone provisioning for combat units. A drone configurator was added to the DOT-Chain Defence marketplace, enabling units to customise Unmanned Aerial Vehicles (UAVs) at the point of order.
• For the first time, a competitive tender was announced for the procurement of heavy bomber UAVs and mid-strike UAVs based on technical specifications. Tenders will be conducted in a restricted environment.
• In June, DOT concluded 69 contracts totalling UAH 15 billion. The largest share – UAH 5.5 billion – comprised food procurement.
• In June, the procurement of 2,500 all-terrain vehicles (ATVs) was unsuccessful owing to excessively short delivery timelines and an excessive procurement volume within a single lot.
• In H1 2026, contracts worth UAH 1.4 billion were concluded for the provisioning of the State Special Transport Service (SSTS) with food products and materiel.
• Over a three-month period, DOT concluded 16 contracts totalling UAH 144.9 million through Prozorro Market.
• MILIKON UA LLC, a party to a NABU investigation, is required to pay DOT a fine of nearly UAH 100 million for the supply of substandard body armour.

Procurement Overview

In June, the DOT Defence Procurement Agency (DOT) announced 86 tenders (208 lots) with an expected value of UAH 23.1 billion. The majority (UAH 8.7 billion) comprised tenders for food procurement. 71% of all Prozorro procurements were initiated under the simplified procedure, with a further 29% conducted under a framework agreement for UAV procurement. In total, 73 companies participated in the tenders, excluding UAV procurements. The average number of bids per tender stood at 2.34. The most competitive category was UAVs, attracting 3.55 bids per tender.

Competition Indicators in DOT-Announced Procurements, June 2026

One materiel lot of UAH 409,500 has been reclassified under the “Other” category.

In June, DOT concluded 69 contracts totalling UAH 15 billion – resulting from tenders announced both in June and previously.

The largest share – 36.4% (UAH 5.5 billion) – comprised food procurement and catering services (4 contracts). Expenditure on pickup trucks totalled UAH 4.3 billion (28.4%), and UAV procurement accounted for UAH 3.7 billion (24.3%); however, this figure does not include the Agency’s direct contracts or procurements through DOT-Chain Defence. UAH 759.3 million (5.1%) was allocated to POL, with a further UAH 190.6 million (1.3%) to materiel.

DOT Contracts Concluded in June 2026

Institutional Changes

State Budget Amendments

In June, total security and defence expenditure for 2026 rose to a record UAH 4.4 trillion. Of this, UAH 2.3 trillion is earmarked for the procurement of weapons and military equipment, and approximately UAH 1.5 trillion for the monetary allowances of service personnel.

The increase in expenditure became possible after the Verkhovna Rada adopted amendments to the State Budget for 2026 at the start of June, providing for the financing of the security and defence sector through the EU credit package worth EUR 90 billion for 2026–2027.

In 2026, the State Budget will receive the first tranche of the credit – EUR 45 billion (UAH 2.221 trillion), of which EUR 31.8 billion (UAH 1.56 trillion) is earmarked to support defence and security capability.

Ratification of the package had long been blocked by Hungary. The situation changed following the victory of the opposition Tisza party in the parliamentary elections: at the end of April the Council of the EU unblocked the programme, and the European Parliament adopted the package of decisions. For further detail, see the March monitoring report by StateWatch.

UAV

Key risks:

• restricted information on procurement details on Prozorro

In H1 2026, the DOT Defence Procurement Agency contracted UAVs worth over UAH 333.6 billion – twice the volume for the same period of the previous year. The largest share comprised FPV drones.

Monthly Drone Provisioning

In June, the Ministry of Defence launched the pilot stage of the “Basic Level” project – a model of guaranteed monthly drone provisioning for combat units. Units will receive a guaranteed volume of drones for operational planning, whilst manufacturers receive predictable demand for 6-12 months. Deliveries will follow a fixed formula, with the first batches due in July.

The distribution of equipment will take into account the needs of each unit: direction, intensity and nature of combat operations, and the situation at the front. Units will select drones through DOT-Chain, and, in the absence of the required type, will receive a substitute with similar technical specifications.

In addition to direct deliveries to combat units, a fixed percentage and surplus resources will be directed to the Commander-in-Chief of the Armed Forces of Ukraine (AFU) reserve. This will enable the rapid reinforcement of critical directions in the event of escalation.

The “Basic Level” model is planned to be extended to other categories of weapons and military equipment.

DOT-Chain Defence

In June, at the request of military personnel, a drone configurator function was added to the DOT-Chain Defence marketplace. It allows a UAV to be adapted to a unit’s requirements in a few steps at the point of order, and for a combat-ready drone to be received. The first combat unit has already independently configured a strike UAV using this function.

When placing an order, a unit representative can see all available modifications of the system offered by the manufacturer. Once confirmed, the drone is dispatched to the unit, with DOT overseeing logistics and processing payment upon delivery.

Competitive UAV Procurement

For the first time, the Agency announced a competitive tender for heavy bomber UAVs and mid-strike UAVs. This is the first procurement of drones on this scale under a competitive procedure based on technical specifications rather than specific models. Contracts are planned for tens of thousands of UAVs with 2–4 suppliers of each type, with a single manufacturer able to secure up to 50% of the order volume.

Tenders will be conducted in a restricted environment involving verified manufacturers whose products meet the stated requirements. Competitive procurement of heavy bomber UAVs and mid-strike UAVs became possible following the transition to technical-specification-based Requirement formation. A similar approach enabled savings of over 16% on the initial value of 155mm munitions.

Prozorro

Separately in June, 15 contracts were concluded through Prozorro for the procurement of Autel-series reconnaissance UAVs worth UAH 3.7 billion. 10,500 units of the Autel Evo Max 4N model were contracted at a price of UAH 219,000 per unit, and 9,335 units of the Autel Evo Max 4T model at UAH 150,486 per unit.

From June 2026, UAV procurements announced by the Agency on Prozorro are subject to restricted access to information on drone quantities and models. This prevents price comparison against market rates. At the same time, the details remain visible on authorised electronic platforms.

All-Terrain Vehicles

Key risks:

• short delivery timelines
• excessive procurement volume within a single lot

In June, the Agency announced the procurement of 2,500 all-terrain vehicles (ATVs) with an engine displacement of 800 cm³ or above. One procurement was divided into five lots of 100 units each, and a separate tender for 2,000 units. None received bids from participants.

The lots of 100 units stipulated delivery by the end of July 2026 – that is, within one month of contract conclusion. A prospective participant noted that the minimum production cycle is 4–5 months and requested that the deadline be extended to November 2026. With regard to the 2,000-unit procurement, participants demanded that the procurement be divided into smaller lots. They indicated signs of an artificial restriction of competition and the risk of concentrating the entire supply volume with a single contractor.

The Agency declined to revise the procurement terms, as a result of which none of the six lots proceeded.

Following this, the Agency announced eight lots for the procurement of 1,500 ATVs with an engine of 800 cm³ or above, with delivery by December 2026. Of these, four lots proved unsuccessful – a participant’s bid did not meet the procurement requirements. The remainder are at the contract conclusion stage.

Provisioning of the State Special Transport Service

Since January 2026, the DOT Defence Procurement Agency has been providing the State Special Transport Service (SSTS) with rear-area supplies – food products, materiel, and petroleum, oil and lubricants (POL). The SSTS submits the Requirement for goods and services, and DOT administers the procurement cycle within the SSTS budget (approximately UAH 2.9 billion for 2026).

In H1 2026, contracts worth UAH 1.4 billion were concluded for the provisioning of the SSTS.

The primary share comprises Catalogue food products. The SSTS Requirement was met in two ways. Part was met through redistribution within existing AFU contracts, redirecting already-contracted sets to the SSTS. The remainder was met through agreements providing simultaneously for supply to both the AFU and the SSTS. As a result, 4.1 million units worth UAH 521.2 million were allocated to the SSTS.

The Agency noted that the quantity of sets allocated to the AFU remained unchanged, and that the released quantities have been or will be contracted under subsequent state contracts.

Separately, under standalone contracts for the SSTS, 65,086 standard ration packs worth UAH 81.2 million were contracted. In H1, the Agency also concluded 79 contracts for the supply of protective equipment, kit and footwear for the SSTS. No POL procurements for the SSTS were conducted by the Agency.

Prozorro Market

In early April 2026, the government granted DOT the status of a Centralised Procurement Authority (CPA). This decision granted the Agency authority to administer the Prozorro Market electronic product catalogue for defence procurers.

As of mid-July, the Agency has created and administers six categories of goods in the Prozorro Market electronic catalogue: motorcycles, ATVs, pickup trucks, buggies, protective ponchos and electric winches for ATVs.

The total value of contracts concluded through Prozorro Market stands at UAH 144.9 million. Specifically, 5 contracts for the procurement of buggies worth UAH 71.9 million, 10 contracts for pickup trucks (UAH 69.1 million) and 1 contract for ATVs (UAH 3.8 million) were concluded.

Previously, units independently analysed the market, verified suppliers and conducted procurements. These functions, including the standardisation of requirements for product categories, are now centralised within DOT. A procurer need only select the required category and announce a request – the system automatically selects from already-verified suppliers.

Materiel

In June, DOT concluded 15 contracts for the supply of materiel worth UAH 190.6 million, with savings of nearly UAH 9 million. Details of key procurements are set out in the table.

Materiel Procurement in June 2026

Body Armour

Owing to a court appeal, the largest contract in the materiel category – worth UAH 97.9 million – was concluded with NVP TEMP-3000 LLC for the supply of 5,500 modular body armour vests.

The lowest price bid at the tender was submitted by UKRTAK.UA LLC – UAH 16,358 per unit. However, TEMP-3000 appealed the decision to award the contract in court, contending that the conformity certificate submitted by UKRTAK.UA confirmed only the re-approval of the reference sample, without specifying the colour or type of product, and therefore did not demonstrate the goods’ compliance. The court found DOT’s decision unlawful and overturned it. As a result, the contract was concluded with NVP TEMP-3000 LLC at a price of UAH 17,800 per unit – 8.8% more expensive than UKRTAK.UA’s bid.

Fine for the Supply of Substandard Body Armour

MILIKON UA LLC is required to pay a fine of UAH 97.4 million for the supply of substandard body armour to the military. This concerns a contract for 10,000 modular body armour vests worth UAH 217.5 million, concluded by DOT in February 2025.

During acceptance inspection, it was established that the body armour vests were fitted with Chinese armour plates, which were penetrated during ballistic testing and exhibited poor stitching. As a result, the goods were not accepted and the contract was subsequently terminated. For further detail, see the StateWatch article “MILIKON UA LLC, named in NABU investigation, ordered to pay almost UAH 100 million for substandard body armour”.

In total, materiel contracts in June were concluded with 15 companies.

Materiel Suppliers in June 2026

Food Procurement

Key risks:

• reduction in the expected value in Catalogue procurements
• selection as winners of companies that have previously supplied food products at inflated prices
• selection as winners of companies that have previously supplied substandard products

In June, the Agency concluded 4 contracts for the supply of Catalogue food sets and catering services worth UAH 5.5 billion, with savings of UAH 928.3 million.

Catalogue Food Products

In June, DOT contracted nearly 45 million sets of food products under the Catalogue worth UAH 5.5 billion. The largest contract – for the supply of 27.3 million sets – was concluded with BUSK CANNING PLANT LLC at a price of UAH 121.86 per unit. The company features in an SBI case concerning the under-supply and delivery of substandard products to the Armed Forces.

This procurement was announced in May with an expected unit price of UAH 123.4 per set – nearly 28% below the expected value established in November 2025, when DOT first planned to contract Catalogue food products a year ahead. At that time, ceiling prices rose by 8% compared with May 2025 procurements, and the expected value per set increased to UAH 171.5. The UAH 123.4 figure is the lowest expected unit value across the Agency’s entire procurement history under the simplified procedure.

In subsequent procurements announced at the start of June, the expected value was restored to UAH 171.5 per set. A contract for the supply of 7.4 million sets worth UAH 896.1 million was concluded with OKHTYRKA MEAT PRODUCTS LLC. A further contract – for 10.4 million sets (UAH 1.3 billion) – was concluded with GRAND-CONSULT LLC. Owing to strong competition, participants substantially reduced their bids: the average price per set in concluded contracts came to UAH 123.2 – 28% below the expected value.

GRAND-CONSULT LLC features in a criminal case known as “eggs at UAH 17”. Until November 2024, the company’s owner was Tetiana Hlyniana, who as of May 2026 is on the NABU wanted list. The largest lot also featured a newly established consortium – the GRAND-CONSULT CONSORTIUM – whose head is Vitalii Torba, who is also the current owner of GRAND-CONSULT LLC. The Consortium was registered only one month prior and participated in state tenders for the first time at DOT. The material and technical base for the Consortium was provided by GRAND-CONSULT LLC.

In total, food and catering contracts in June were concluded with 4 companies.

Food Suppliers in June 2026

Petroleum, Oil and Lubricants

Key risks:

• dependence of contracts on fluctuations in global oil prices

POL Procurements in June 2026

In June, the Agency concluded 3 contracts with JSC UKRNAFTA for 12,726 tonnes of summer diesel at a price of UAH 56,967 per tonne, for delivery by the end of July. This is 12.3% below the May price (UAH 64,923 per tonne), which was the highest in the Agency’s contracts since 2024. The price fluctuations were driven by a rise in global oil quotations amid escalating tensions in the Middle East and their subsequent resolution.

In June, the Agency also concluded 8 contracts for the procurement of various lubricants and chemical products worth UAH 34.3 million.

In total, POL contracts in June were concluded with 5 companies.

POL Suppliers in June 2026

Recommendations Based on the Analysis of Challenges in June 2026

To the DOT Defence Procurement Agency

The StateWatch monitoring covers exclusively procurements published in the Prozorro electronic system. Accordingly, the sample does not include direct contracts and other procurements – particularly those for weapons and military equipment – information on which constitutes a state secret and/or was not published in the system. Consequently, the number of contracts and their total value presented in the monitoring reflect only a portion of the volume actually contracted.