Information current as of 7 September 2026.
Key Findings
- On 31 August, Arsen Zhumadilov stepped down as Director of DOT. Artem Romaniukov, who previously headed the MoD’s Procurement Policy Directorate, is temporarily performing the duties of director.
- Implementation of the guaranteed provisioning level project “Basic Level of Provisioning” is being scaled up: the second stage adds Unmanned Ground Vehicles (UGVs) and heavy mid-strike drones.
- In August, DOT concluded 182 contracts totalling UAH 15.7 billion. The largest share – UAH 6.9 billion – comprised UAV procurement.
- During the month, 19 contracts worth a total of UAH 2.7 billion were terminated – for the procurement of UAVs, lubricants, jackets, helmets and plastic tableware. The main reason was delivery delays and non-conformity with quality requirements.
- In August, suppliers with a history of breaches returned to DOT tenders – already under new names or through affiliated companies.
- Catalogue food products were contracted from DISH GOOD LTD at a record-high price – UAH 158.10 against an expected UAH 172 per set – despite strong competition in this tender.
Overview of Procurements
In August, the DOT Defence Procurement Agency (DOT) announced 89 tenders (163 lots) with an expected value of UAH 8.6 billion. The majority of procurements were initiated under the simplified procedure – 85% of all Prozorro procurements. A further 15% were conducted under a framework agreement for UAV procurement. In total, 99 companies participated in the tenders, excluding UAV procurements. The average number of bids per tender stood at 2.44.
| Procurement Category | Expected Value, UAH | No. of Participants | No. of Bids per Tender |
|---|---|---|---|
| Materiel | 1.51 billion | 30 | 1.51 |
| UAV | 1.31 billion | Undisclosed | 2.26 |
| Vehicles | 1.17 billion | 11 | 1.71 |
| Food | 623.69 million | 9 | 1.5 |
| Other | 4.01 million | 49 | 3.78 |
| TOTAL | 8.63 billion | 99 | 2.44 |
In August, DOT concluded 182 contracts totalling UAH 15.7 billion – resulting from tenders announced both in August and previously. The largest share – 43.9% (UAH 6.9 billion) – comprised UAV procurement (24 contracts); however, this figure does not include the Agency’s direct contracts or procurements through DOT-Chain Defence. Expenditure on food and catering services totalled UAH 3.9 billion (24.8%), and on vehicles – UAH 3.3 billion (20.9%). Materiel accounted for nearly UAH 872 million (5.5%), and POL – UAH 321.4 million (2%).
| Procurement Category | No. of Contracts | Contract Value, UAH | Share |
|---|---|---|---|
| UAV | 24 | 6.91 billion | 43.9% |
| Food | 46 | 3.9 billion | 24.8% |
| Vehicles | 33 | 3.28 billion | 20.9% |
| Materiel | 46 | 871.96 million | 5.5% |
| POL | 11 | 321.43 million | 2% |
| Other | 22 | 452.6 million | 2.9% |
| TOTAL | 182 | 15.74 billion | 100% |
Leadership Changes at DOT
On 31 August, Arsen Zhumadilov stepped down as Director of the Defence Procurement Agency (DOT), having headed the Agency since March 2025. Artem Romaniukov, who previously headed the MoD’s Procurement Policy Directorate, is temporarily performing the duties of director. The competition for a new head of DOT is expected to be completed by the end of 2026. In parallel, the selection of two independent members of DOT’s Supervisory Board is under way – without them, the board will lack the quorum needed to take decisions, including on the selection of the Agency’s director.
Amongst the new director’s key tasks are the continued transition of defence procurement to tender procedures, digitalisation of processes, and strengthening anti-corruption work. The priority is uninterrupted provisioning of the military through increased procurement transparency, effective use of budget funds, and risk minimisation.
Regulatory Changes
In August, the Ministry of Defence approved amendments to the Instruction on Rear-Area Procurement Planning, simplifying the procurement mechanism for petroleum, oil and lubricants, food products and materiel for the Defence Forces.
Previously, the list of rear-area goods and prices was pre-approved with the MoD. If market prices changed during the approval period, the list required full re-approval, which extended delivery timelines.
The updated version provides for:
- for fuel – abolition of the mandatory re-approval of the list in the event of price fluctuations: procurement is conducted at the current market value, taking into account exchange quotations and international price indicators (including Platts and ARGUS);
- for other rear-area goods (food products, materiel, lubricants, etc.) – a restriction whereby the expected value of the procurement item in the tender documentation may not exceed the estimated value by more than 10%.
Any excess over the estimated value is planned to be covered through savings made in other procurement areas.
UAVs
Key risks:
- restricted information on procurement details on Prozorro
- dependence on imported goods
Basic Level of Provisioning
The Ministry of Defence is scaling up implementation of the guaranteed provisioning level project for units directly engaged in active combat operations. At the second stage, Unmanned Ground Vehicles (UGVs) and heavy mid-strike drones are being added to the monthly provisioning of the most in-demand UAV equipment.
Various types of logistics and combat UGVs, including kamikaze robots, will be issued to units of the Armed Forces, the National Guard and the State Border Guard Service holding the defence line. Heavy mid-strike drones will be supplied at corps level, with corps independently distributing them amongst units that have trained crews and make effective use of such UAVs.
The “Basic Level of Provisioning” project was launched in June 2026, covering units’ minimum UAV requirements. Under the project, military personnel receive a set quantity of UAVs depending on the intensity and nature of combat operations – units in the most active sectors receive a greater allocation. For further detail, see the June monitoring report by StateWatch.
DOT-Chain Defence
As of mid-August 2026, over the first year of operation of the DOT-Chain Defence marketplace, military personnel had received over 1.2 million drones and other equipment worth nearly UAH 69.2 billion. The average delivery time from manufacturers’ warehouses has fallen from months to weeks.
DOT-Chain Defence operates as a military online store: a unit selects the equipment it needs and places an order, whilst the Agency handles the bureaucratic procedures and payment. The system has now been scaled up to 486 combat units across all Security and Defence Forces. As of mid-August 2026, the range covers all major types of unmanned systems, their munitions, and electronic warfare (EW) equipment – 1,181 items from 300 manufacturers.
Prozorro
In August, 24 contracts were concluded through Prozorro for the procurement of reconnaissance UAVs worth a total of UAH 6.9 billion. The largest number of contracted units related to the DJI Matrice 4T model – 17,200 sets. The most expensive model by price was the Autel Evo Max 4N – UAH 216,526.67 per unit.
| Procurement Item | No. of Contracts | Contract Value, UAH | Quantity | Weighted Average Unit Price, UAH |
|---|---|---|---|---|
| DJI Matrice 4T | 9 | 3.05 billion | 17,200 | 177,583.22 |
| Autel Evo Max 4T | 6 | 1.74 billion | 12,000 | 144,528.73 |
| Autel Evo Max 4N | 3 | 1.21 billion | 5,600 | 216,526.67 |
| DJI Matrice 4E | 6 | 901.17 million | 6,600 | 138,908.87 |
| TOTAL | 24 | 6.91 billion | 41,400 |
UAV procurements announced by the Agency on Prozorro since June 2026 continue to be conducted with restricted access to information on drone quantities and models. At the same time, the details remain visible on authorised electronic platforms.
At the same time, in August the Agency terminated 8 contracts worth UAH 1.3 billion for the procurement of two types of Chinese UAVs owing to breaches of delivery deadlines. The largest number of terminated contracts related to the DJI Matrice 4E model – 3 contracts worth over UAH 1.1 billion. Under these agreements, nearly 8,000 drones were due to be delivered but never reached the customer owing to delivery delays. A further 5 contracts for the supply of 1,000 DJI Mavic 3E units worth UAH 128.3 million were also terminated.
Amongst all terminated UAV procurement contracts for the period from 2024 to August 2026, the main reason for termination was overdue delivery deadlines, against the backdrop of the PRC’s sustained policy of restricting drone exports to Ukraine and partner countries. In one commercial case, a supplier explained that in performing a contract dated November 2024 it had effectively become hostage to the situation: the market depends on Chinese manufacturers, and export restrictions and shortages of certain models, particularly the DJI Mavic line, make timely contract performance difficult.
Materiel
Key risks:
- selection of a winner connected to companies fined by the Antimonopoly Committee of Ukraine (AMCU) for anti-competitive concerted practices
- delivery delays owing to non-performance of contracts
- absence of participants in tenders
In August, DOT [concluded 46 contracts] for the supply of materiel worth UAH 872 million, with savings of UAH 3.7 million. Details of key procurements are set out in the table.
| Procurement Item | No. of Contracts | Contract Value, UAH | Quantity | Weighted Average Unit Price, UAH |
|---|---|---|---|---|
| Windproof and waterproof winter jacket | 14 | 463.20 million | 142,600 | 3,257.35 |
| Windproof and waterproof winter trousers | 10 | 243.87 million | 101,500 | 2,405.39 |
| Sleeping mat | 4 | 46.82 million | 103,000 | 454.58 |
| Pouch bag | 3 | 27.15 million | 75,000 | 361.94 |
| Individual heating device | 2 | 25.78 million | 800,000 | 32.22 |
| Field seat | 3 | 19.66 million | 100,000 | 196.56 |
| Other | 10 | 45.49 million | – | – |
| TOTAL | 46 | 871.96 million |
From August, a clause exempting suppliers from penalties for the first seven days after the delivery deadline was removed from concluded contracts. Participants requested that the clause be reinstated as a buffer in case of delays. The Agency explained that the provision granted an additional period for performing obligations without incurring liability. The clause was removed in order to ensure the proper and timely performance of contracts.
In August, materiel contracts were concluded with 27 companies.
| Supplier | No. of Contracts | Contract Value, UAH |
|---|---|---|
| ZPSPETSTORH LLC | 2 | 128.93 million |
| ANVA LLC | 4 | 93.92 million |
| TUSMO LLC | 3 | 83.85 million |
| TEXTILE-CONTACT LLC | 2 | 67.75 million |
| ISTOK TRADE LLC | 2 | 57.34 million |
| PRJSC ASTRA LUX | 2 | 48.7 million |
| PRYLUTSKA GARMENT FACTORY LLC | 1 | 47.97 million |
| Other | 30 | 343.51 million |
| TOTAL | 46 | 871.96 million |
The largest share of funding in this category (UAH 738.7 million) went to winter kit: jackets, trousers, hand warmers, hats and scarves.
RESPEKTIV PE and the Rego Family
One of the suppliers of windproof and waterproof winter trousers is RESPEKTIV PE, which concluded a contract for the supply of 10,000 trousers at a price of UAH 2,421.84 per unit. In August, the company also contracted for the supply of **2,300** summer field uniforms.
The owner of the company is Oleksii Rego, and the director is likely his wife, Anna Rego, who is also co-owner of ALLEN-BIZNES PE. Oleksii himself runs ALLEN-BIZNES.
In August, the Antimonopoly Committee (AMCU) fined ALLEN-BIZNES, together with FORM TRADE LLC and GARMENT FACTORY “PROFI TEKS” LLC, for collusion in procurements of military uniforms for the Armed Forces of Ukraine (AFU) in 2023–2024 – totalling UAH 29.86 million.
ALLEN-BIZNES PE has not participated in AFU procurements since 2023. However, the Rego family returned to DOT tenders through RESPEKTIV PE: at the end of 2024, the company applied for a tender for insulated jacket sets and offered the lowest price, but was rejected for failing to provide a tender guarantee. In September 2025, RESPEKTIV again submitted a bid in a similar tender and concluded a contract for the supply of 20,000 insulated jacket sets. In total, RESPEKTIV PE has 4 contracts with DOT worth UAH 120 million.
Terminated Contracts
In August, the Agency terminated two contracts in the materiel category worth UAH 356.8 million owing to systematic delivery delays and repeated non-conformity of goods with technical requirements.
LEADER STP LLC
The most expensive of the two was the contract with LEADER STP LLC for the supply of 40,000 ballistic helmets worth UAH 295.84 million. The first 10,000 units were due to be delivered by 30 June. However, by the end of August, DOT had received only 1,000 units worth UAH 7.4 million. There were also quality issues: the first batch was only accepted on the second attempt, and subsequent batches were returned for non-conformity. DOT terminated the agreement and fined the company 20% of the value of the undelivered goods – UAH 57.7 million.
Until November 2025, LEADER STP LLC was named “TEMP-2000” and was part of Yurii Yevtushenko’s “TEMP-3000” group. One month after the name change, the company received, without competition, a contract for “Kaska-2M” helmets manufactured by TEMP-3000. LEADER STP subsequently formally left the group, but the connection between the companies persisted. For further detail on the failed delivery and the companies’ links, see the StateWatch article.
COYOTE LLC
The second terminated contract was with COYOTE LLC for the supply of 20,000 windproof and waterproof winter jackets worth over UAH 60.9 million. The reason was similar – delivery delays and failure to pass quality inspection. Of the first batch of 5,000 sets, the company delivered only 1,000. Batches of jackets also failed quality inspection three times.
COYOTE was registered in 2012 as “BM INTERNATIONAL” LLC, which specialised in the sale of food products. In 2023, Inna Loik became the owner – the company was renamed and repurposed for clothing manufacture. It first entered DOT tenders at the end of 2025. The winter jackets became its first major defence contract.
Inna Loik is also registered as a sole trader (FOP). At the start of 2024, FOP “Inna Loik” participated in a tender for summer field uniforms but did not win any lot. The next time, the FOP entered a tender for windproof and waterproof winter trousers – already after the termination of the contract with COYOTE LLC.
This procurement was cancelled owing to a technical error by the Agency: in its notice on remedying the non-conformity, DOT mistakenly referred to the wrong clause of the annex, which required a certificate of experience in performing a similar contract. Although FOP Inna Loik subsequently provided this certificate, the Agency cancelled the procurement, as the law does not permit a corrected requirement to be resent. Inna Loik disagreed with DOT’s decision and challenged it in court, which ordered the Agency to reverse its decision to cancel the procurement.
Unsuccessful Procurements
Also during the month, 15 lots with an expected value of UAH 1.3 billion proved unsuccessful owing to the absence of participants in the tenders.
| Item | Expected Value, UAH |
|---|---|
| Modular body armour vests | 1.26 billion |
| Special-purpose uniform | 15.74 million |
| Headphones | 14.46 million |
| Footwear | 11.16 million |
| Winter boots | 5 million |
| Sports uniform | 1.27 million |
| Armour belt | 318.16 million |
| Neck gaiter | 125.7 million |
| TOTAL | 1.31 billion |
Food Procurement
Key risks:
- systemic delivery failures of food products owing to non-performance of contracts
- selection as winners of companies that have previously supplied food products at inflated prices
- repeated conclusion of contracts with suppliers interconnected through common beneficial owners
In August, the Agency concluded 46 contracts for the supply of food products, water and catering services worth UAH 3.9 billion, with savings of UAH 561.2 million.
| Procurement Item | No. of Contracts | Contract Value, UAH | Quantity | Weighted Average Unit Price, UAH |
|---|---|---|---|---|
| Catalogue food products | 7 | 3.02 billion | 20.89 million | 143.52 |
| Water | 32 | 524.78 million | 95.41 million | 5.49 |
| Ration packs | 6 | 277.83 million | 644,330 | 431.20 |
| Catering services | 1 | 73.98 million | 552,000 | 134.01 |
| TOTAL | 46 | 3.9 billion |
Catalogue Food Products
In August, DOT contracted 20.9 million sets of food products under the Catalogue worth UAH 3 billion. Under the contracts, sets were allocated between the AFU and the State Special Transport Service (SSTS): 20.4 million sets for the AFU, with the remaining 540,000 sets for the SSTS.
The lowest bid was contracted with CAPITAL PRODUCT LLC for the supply of 1.9 million food sets at a price of UAH 120.06 per unit. The highest – with DISH GOOD LTD – was 3.3 million sets at UAH 158.10 per unit. This is the most expensive bid across the Agency’s entire period of centralised provisioning under the simplified system.
Previously, strong competition in these tenders kept prices low: in 2024, contract prices ranged from UAH 105.54 to UAH 154.2, in 2025 – from UAH 121.5 to UAH 154.20, and from January to July 2026 – from UAH 120 to UAH 124 per unit. Low contract prices carry the risk of substandard goods being supplied or of disruptions to food provisioning for military personnel. By contrast, despite strong competition in the August tenders, contract prices nonetheless rose: the weighted average price was UAH 143.52 per unit.
| Winner | Weighted Average Unit Price, UAH | No. of Food Sets |
|---|---|---|
| DISH GOOD LTD | 158.10 | 3.29 million |
| REGION-PRODUCT LLC | 155.46 | 2.29 million |
| BUSK CANNING PLANT LLC | 154.14 | 3.96 million |
| TRADE GRANITE INVEST LLC | 153.54 | 3.7 million |
| FSS UKRAINE LLC | 138 | 1.55 million |
| ADELIN LLC | 125.34 | 4.19 million |
| CAPITAL PRODUCT LLC | 120.06 | 1.91 million |
Also in August, the Agency terminated a contract with UT COMPANY LLC owing to systematic breaches of delivery volumes to military units. The company was due to supply 7 million food sets at UAH 120.06. The company cited force majeure circumstances related to its counterparty, OMEGA LLC, but the Agency deemed this evidence insufficient to confirm force majeure.
Ration Packs
In August, DOT also terminated 5 contracts for the supply of 191,000 ration packs worth a total of UAH 73 million. DOT had concluded the ration pack supply contracts with GRAND-CONSULT LLC back in April: the first batches – 35,000 sets – were due to arrive by the end of May, with the remainder by the end of June. In fact, the company failed to deliver sets on schedule under any of the five contracts.
GRAND-CONSULT LLC features in a criminal case known as “eggs at UAH 17”, concerning the inflation of food product prices for the AFU at the start of the full-scale invasion. Until November 2024, the company’s owner was Tetiana Hlyniana, who is now on the NABU wanted list. For further detail on the failed ration pack delivery, see the StateWatch article.
At the same time, during the month the Agency concluded 6 contracts for the supply of 644,336 ration packs worth UAH 277.8 million – with almost no savings (approximately 0.01% of the procurement value).
The largest quantity was contracted with DIDZHETEL LLC: under four contracts, the company is to supply 551,012 daily food sets at a price of UAH 431.22 per unit. The remainder was procured from KHODORIV MEAT PROCESSING PLANT LLC – at UAH 430.95 per set.
DIDZHETEL LLC is connected to PARTNER UKRAINE LLC, whose contracts were terminated in April owing to breaches of delivery deadlines. Both companies share a common co-founder – the “VS Investment” venture fund of Dnipro businessman Vladyslav Shtipelman.
In total, food, water and catering contracts in August were concluded with 11 companies.
| Supplier | No. of Contracts | Contract Value, UAH |
|---|---|---|
| BUSK CANNING PLANT LLC | 1 | 610.39 million |
| TRADE GRANITE INVEST LLC | 1 | 568.19 million |
| DISH GOOD LTD | 3 | 530.52 million |
| ADELIN LLC | 1 | 525.25 million |
| PRJSC OBOLON | 29 | 511.07 million |
| REGION-PRODUCT LLC | 1 | 356.16 million |
| Other | 10 | 798.68 million |
| TOTAL | 46 | 3.9 billion |
Petroleum, Oil and Lubricants (POL)
During August, the Agency concluded 11 contracts for the supply of petrol and oils worth a total of UAH 321.4 million, with savings of UAH 37 million. At the same time, no contracts for the procurement of diesel fuel were concluded in August: no tenders for this item were announced during the month. In July, the Agency procured 71,400 tonnes of summer diesel fuel for delivery by the end of August.
In August, DOT procured 4,000 tonnes of A-80 petrol from JSC UKRNAFTA, and also concluded 10 contracts for the supply of various oils worth UAH 53.8 million. In total, POL contracts for the month were concluded with 5 companies.
| Supplier | No. of Contracts | Contract Value, UAH |
|---|---|---|
| JSC UKRNAFTA | 1 | 267.6 million |
| SCIENTIFIC PRODUCTION COMPANY “HALYCHYNA” LTD | 4 | 17.92 million |
| RESURS-OIL-A LLC | 2 | 14.9 million |
| KSM-TRADE LLC | 2 | 14.75 million |
| ARIAN TECHNICAL OILS PLANT LLC | 2 | 6.26 million |
| TOTAL | 11 | 321.43 million |
At the same time, in August DOT terminated two contracts with RESURS-OIL-A LLC for the supply of 15 tonnes of GOI-54p lubricant worth UAH 2.4 million. Under one contract the company was to deliver the goods by the end of April, and under the other – by the end of August. At the start of August, the company sent the Agency a letter requesting the termination of both contracts, citing an inability to deliver but without explaining the reasons. The Agency terminated the contracts and imposed a fine of UAH 471,000 on RESURS-OIL-A LLC.
RESURS-OIL-A LLC is the largest supplier of lubricants to the AFU: over 2024–2026, the company accounted for approximately 26% of lubricant contracts. Following the termination of the contracts, the Agency is entitled to reject bids from RESURS-OIL-A LLC for one year.
Recommendations Based on the Analysis of Challenges in August 2026
To the DOT Defence Procurement Agency
Unsuccessful procurements owing to the absence of participants
Conduct preliminary market consultations with potential suppliers prior to announcing tenders.
Expected impact: will strengthen tender competition and reduce the number of unsuccessful tenders.
Contracting of companies connected to suppliers that have previously breached contract terms
Broaden the grounds for disqualifying tender participants: establish a qualification criterion based on connections to legal entities whose contracts with DOT have been terminated, verified through the beneficial ownership register.
Expected impact: will prevent unscrupulous participants from succeeding at the qualification stage.
Restricted access to information on UAV procurements via Prozorro
Ensure publication of aggregated data on UAV procurement volumes and types, without disclosing information that could compromise security.
Expected impact: will preserve capacity for public oversight of public expenditure.
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.
The DOT procurement monitoring is part of a support programme run by the Special Defence Adviser, funded by the Government of the United Kingdom.