Information current as of 8 September 2025
– In August, the DOT announced 58 tenders totalling UAH 3.27 billion.
– 73 contracts worth UAH 1.86 billion were concluded, with over half allocated to petroleum, oil and lubricants (POL) supplies.
– For the first time, UKRNAFTA JSC lost a diesel fuel procurement contract, which was won by OKKO-EXPRESS LLC with an offer 12% below the expected value (UAH 38,760 per tonne versus the expected UAH 43,930)
– After four unsuccessful months, the agency successfully contracted the supply of 50,000 wind- and waterproof winter trousers in August, at an average cost per a pair of UAH 2,154.86.
– The DOT signed contracts for the procurement of material equipment featuring the new MM-25 (Multicam) camouflage pattern, worth UAH 97.27 million.
– The agency terminated its supply contract with Milikon UA, the distributor of Israeli body armour, in August due to non-compliance with terms. Notably, the State Audit Service had ordered the DOT to cancel this contract in March following identified procurement violations.
The procurement of hygiene supplies for the “casualty pack” was announced with tight deadlines, raising doubts about the possibility of adequate competition.
In August, the State Logistics Operator announced a total of 58 tenders (74 lots) with an expected value of UAH 3.27 billion. Almost all the procurements (99.97%) were conducted under simplified procedures, totalling UAH 3.27 billion. Throughout the month, 58 companies participated in the tenders, with an average of 2.13 bids per tender.
In August, the agency concluded 73 contracts totalling UAH 1.86 billion, based on tender results from August and previous announcements. The DOT spent almost half of this amount on petroleum, oil and lubricants. Material equipment expenditure amounted to UAH 772.86 million (41.63%), while UAH 86.73 million was spent on other goods and services. Combat rations were contracted for UAH 82.89 million (4.46%).
Petroleum, Oil and Lubricants
In August, the agency concluded 23 contracts for the supply of POL, totalling UAH 914.05 million. The State Logistics Operator achieved savings of UAH 114.60 million.
Diesel fuel for summer use represented the largest share of the total value of the POL contracts – 18,907.3 tonnes at an average price of UAH 38,947.5 per tonne, totalling UAH 735.08 million. Although UKRNAFTA JSC remained the DOT’s traditional diesel supplier, the state-owned company lost to a competitor for the first time in August for a single lot. OKKO-EXPRESS LLC won the contract to supply 6,107.3 tonnes of diesel at a price of UAH 236.72 million (UAH 38,760 per tonne), while UKRNAFTA JSC’s bid was UAH 43,930 per tonne.
Additionally, the DOT contracted UKRNAFTA JSC to supply 2,500 tonnes of jet engine fuel, worth UAH 111.6 million. Petrol was also purchased in the form of vouchers:
– 100,000 litres of A-98 grade petrol from PETROL PARTNER LLC for UAH 5.53 million (UAH 55.3 per litre).
– 2,500 litres of A-95 grade petrol from UKRNAFTA-POSTACH LLC for UAH 4.29 million (UAH 42.96 per litre).
The agency also purchased 505 tonnes of various types of motor oil for UAH 36.74 million, as well as over 200 tonnes of transmission oil for UAH 13.29 million.
In August, the agency signed POL supply contracts with thirteen companies. UKRNAFTA JSC received the contract with the highest value.
Material Equipment
The DOT concluded 36 contracts for material equipment procurement, totalling UAH 772.86 million. Total savings amounted to UAH 10.37 million.
MIK LLC was awarded the largest contract for the supply of 20,000 tactical headsets with active noise reduction systems, valued at UAH 317.5 million (UAH 15,875 per unit).
Additionally, after four unsuccessful months, the DOT successfully completed the procurement of wind- and waterproof winter trousers in August. It should be noted that, in April, the agency reduced the expected price sharply to UAH 1,724.7 per unit – 21% below the average price in 2024 contracts (UAH 2,188). Following the unsuccessful procurements in April, the agency gradually increased the price each month. Ultimately, in August, it succeeded in signing eight contracts with individual companies for the supply of 50,000 pairs of trousers for UAH 107.92 million, at an average price of UAH 2,154.86 per pair.
ANVA LLC offered the lowest price – the supply of 5,000 trousers for UAH 10.17 million (UAH 2,034.48 per unit) – which was 0.29% below the expected value. It is worth noting that the tender for this procurement was first announced in July 2025, with an expected cost of UAH 2,040.50 per unit. However, by August, this figure had increased by 6.54%, reaching UAH 2,174.04 per unit.
VP PROMODIAG LLC will provide the most expensive supply: 5,000 trousers for UAH 10.87 million (UAH 2,174.04 per unit). This procurement was completed without any savings.
Furthermore, after the failed tenders in April-June, the DOT purchased 40,000 short-sleeved T-shirts for UAH 6.76 million (UAH 168.9 per unit) in August. These were announced in July, with an expected value of UAH 169.43 – 13.1% higher than the figure in April (UAH 149.8).
Due to urgent need, at the end of July the agency commenced procurement of certain uniform items with the new MM-25 (Multicam) camouflage pattern, which had only been approved on 11 June. The tight deadlines meant that most companies were unable to prepare to participate in the tenders, resulting in only a few suppliers joining the bidding process. This process is discussed in detail in the July monitoring report.
Following new and previously announced tender results in August, the agency signed six contracts for the supply of material equipment with the MM-25 pattern:
– MIK LLC – 15,000 special winter suits for UAH 64.81 million
– ASTRA LUX PRJS – 5,000 special winter suits for UAH 21.63 million
– OLTEKS LLC – 4,000 combat shirts for UAH 3.84 million and 4,000 summer suit trousers for UAH 4.36 million
– PRYLUTSKA GARMENT FACTORY LLC – 4,000 summer field caps for UAH 1.04 million and TERRA-TEKS LLC – 6,000 summer field caps for UAH 1.66 million
Material equipment contracts were concluded with a total of 21 companies in August. MIK LLC received the largest contract value.
Food Procurement
In August, the State Logistics Operator signed a contract with PYRIATYNSKIY DELIKATES LLC for the purchase of daily combat rations totalling UAH 82.9 million.
In July, the agency announced a tender for the procurement of reinforced daily combat rations (menus 1-14), consisting of 12 lots with an expected total value of UAH 184.21 million (UAH 460.51 per unit). Only one company participated in the tender: PYRIATYNSKIY DELIKATES LLC, which submitted bids for six lots. Following the tender results, the company signed a contract to supply 180,012 reinforced rations at a cost of UAH 82.89 million (UAH 460.5 per ration).
The other six lots were unsuccessful due to a lack of bids. Consequently, the DOT was forced to re-announce the tender in August. Once again, however, only PYRIATYNSKIY DELIKATES LLC participated, submitting bids for all lots. Three contracts were subsequently signed with the company, totalling over UAH 101.11 million.
Challenges in August Procurements
Unsuccessful Tenders
Four tenders (four lots) totalling UAH 393.39 million could not be completed in August. Three tenders in the POL category, with an expected value of UAH 393.33 million, were cancelled due to a lack of bids. Specifically, it proved impossible to procure 8,000 tonnes of jet engine fuel with a total expected value of UAH 38.53 million.
This is the second time that UKRNAFTA JSC has failed to submit bids for such a tender. Previously, the company had participated in every procurement procedure for jet engine fuel; however, in July, the tender was cancelled for the first time due to its absence specifically. UKRNAFTA JSC’s non-participation was likely due to the summer strikes on the Kremenchuk oil refinery, which may have affected supply stability to some extent, although most of the fuel has been imported since 2022.
Terminated Contract
In August, the DOT terminated its contract with MILIKON UA LLC, the distributor of Masada Armour body armour from Israel, which was signed in February 2025. The contract was for the supply of 10,000 modular body armour sets (configuration 1-5).
The formal grounds for termination were the supplier’s failure to comply with the terms of the contract – the company did not deliver and accept the goods within the stipulated timeframe. The DOT imposed an operational sanction on the supplier by unilaterally withdrawing from the contract.
However, the State Audit Service had already ordered the DOT to terminate this contract in March due to identified violations. Auditors found that MILIKON UA LLC had used a certificate of conformity issued to another Masada Armour distributor, FORTETSIA ZAKHYSTU LLC, without providing evidence of a legal relationship between the two companies.
The State Audit Service deemed this to be a violation and required the contracting authority to terminate the contract. After losing its judicial appeal against this decision, the DOT filed an appellate complaint.
In September, meanwhile, the agency announced new tenders for the supply of 10,000 modular body armour sets. The procurement was conducted under a dynamic framework agreement with restricted access, which conceals information about the winner. In response to a query from StateWatch, the DOT indicated that three companies were qualified for the framework agreement: KHARKIV PLANT OF PERSONAL PROTECTIVE EQUIPMENT LLC, TEMP-3000 LLC and UKRTAK.UA LLC. The most recent contract under the framework agreement was concluded with TEMP-3000 LLC for UAH 203.9 million (UAH 20,390 per unit).
Notably, in the second half of 2024, contracts with TEMP-3000 LLC were concluded at significantly higher prices: UAH 25,438 per set. In 2025, the company reduced its bids in line with the falling expected value. In February-March, it supplied body armour at UAH 21,378-22,180; under the latest contract, however, the price dropped to UAH 20,390 per set.
Casualty Pack
On 29 August, the DOT announced three tenders for the procurement of hygiene supplies for wounded individuals, totalling over UAH 37 million. 48,000 kits for men and 2,000 kits for women. The deadline for submitting bids was set for 10 September, leaving just 12 calendar days. During this period, participants had to prepare documentation for at least 15 items for the men’s kits and 20 items for the women’s kits.
In addition to the tight preparation timeframe, the terms require delivery by 30 September. This means that the successful bidder would have fewer than three weeks to procure tens of thousands of products, assemble the kits and distribute them to hospitals in different regions of Ukraine.
State Audit Service Monitoring
One of the main challenges has been the inaccuracy of documents submitted by participants in the tender for material equipment. Between August and September 2025, the State Audit Service identified a series of non-compliance issues related to subcontractors’ certificates of conformity whilst monitoring winter uniform procurements.
GRIN-MODA LLC was determined to be the winner of the procurement of 10,000 wind- and waterproof winter jackets, with whom a contract worth over UAH 30.64 million was concluded in August. However, the State Audit Service established during monitoring that a supplementary agreement to the contract specified an additional subcontractor, GALANT SEWING FACTORY LLC, which had not been included in the initial tender proposal. GRIN-MODA LLC indicated in its tender proposal that it would supply its own goods, yet after concluding the contract it also engaged GALANT SEWING FACTORY LLC to fulfil it. Nevertheless, Grin-Moda did not provide a certificate of conformity for the subcontractor’s products.
A similar situation arose during the procurement of 10,000 windproof and waterproof winter trousers, valued at UAH 21.72 million. Auditors found that TRADING HOUSE KHARKIV LLC had specified three manufacturers in its proposal, but had not provided a certificate of conformity from one of them, VERSAHEM LLC. Nevertheless, the agency deemed the proposal to be compliant with the requirements and signed the contract.
The auditors emphasised that such practices create a risk of substandard products being supplied and undermine procedural transparency. The State Audit Service ordered the DOT to strengthen controls and hold the officials responsible for the decisions taken accountable.
Recommendations Based on Analysis of Challenges in August 2025
For the DOT:
1. Implement a mechanism for dividing substantial procurement volumes into separate lots to increase competition and attract a greater number of potential suppliers.
2. Establish broader timeframes for submitting bids that give participants sufficient time to prepare documentation and calculate delivery costs.
3. Set optimal delivery timeframes of at least 1.5-2 months to enable tender winners to procure products in a timely manner, manage logistics and assemble orders properly.
4. Require subcontractors to provide certificates of conformity at the time of contract conclusion and when introducing amendments through supplementary agreements.
For the Ministry of Defence of Ukraine:
1. Adopt a decision to establish a minimum period of six months between introducing new technical specifications and announcing procurements.
2. Inform all market participants in advance about the initiative and, subsequently, about the approval of new technical conditions for material equipment.
DOT procurement monitoring has been supported by the Office of the United Kingdom’s Special Defence Advisor and delivered by EDGE Foundation and StateWatch Think Tank.