Information current as of 7 July 2026.

Key findings

• In July, DOT concluded 162 contracts totalling UAH 16.6 billion. The largest share – UAH 6.4 billion – comprised procurements of petroleum, oil and lubricants (POL).
• In July, the procurement of 52,000 modular body armour vests worth an expected UAH 1.1 billion was unsuccessful owing to the absence of participants.0
• Since the launch of the DOT-Chain Defence marketplace, military personnel have received over 1.2 million drones and other equipment worth nearly UAH 69.2 billion.
• In July materiel procurements, a clause exempting suppliers from penalties for the first seven days after the delivery deadline was removed from draft contracts – despite objections from participants.
• Of the procurement announced at the end of July for 61.27 million litres of water, PRJSC OBOLON secured 96.9% of the volume (59.4 million litres).

In July, the DOT Defence Procurement Agency (DOT) announced 110 tenders (259 lots) with an expected value of UAH 30.4 billion. The majority (UAH 8.7 billion) comprised tenders for Unmanned Aerial Vehicle (UAV) 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, 102 companies participated in the tenders, excluding UAV procurements. The average number of bids per tender stood at 2.4. The most competitive category was UAVs, attracting 4.11 bids per tender.

In July, DOT concluded 162 contracts totalling UAH 16.6 billion – resulting from tenders announced both in July and previously. The largest share – 38.6% (UAH 6.4 billion) – comprised POL procurement (62 contracts). Expenditure on food and catering services totalled UAH 3.9 billion (23.4%), and on vehicles – UAH 3 billion (18.6%). UAV procurement accounted for nearly UAH 3 billion (17.9%); however, this figure does not include the Agency’s direct contracts or procurements through DOT-Chain Defence.

UAV

Key risks:

• restricted information on procurement details on Prozorro

Brave1 Market

Over the first year of the updated “e-Points” programme on Brave1 Market – from 1 August 2025 to the end of July 2026 – military personnel ordered equipment worth USD 1 billion. During this period, over 400 units received approximately 500,000 UAVs, Unmanned Ground Vehicles (UGVs), and electronic warfare (EW) and reconnaissance equipment.

The updated “e-Points” programme, integrated with Brave1 Market, was launched on 1 August 2025. This enabled the introduction of market mechanisms into a previously closed state provisioning system for the Defence Forces – combat commanders gained, for the first time, the ability to independently select the equipment required by their units.

Military personnel earn “e-Points” for verified combat missions – reconnaissance, logistics, casualty evacuation, enemy neutralisation, and the like – and exchange them for the technology they require: drones, UGVs, and EW/reconnaissance equipment. Over 1,100 items are currently available for “e-Points” on Brave1 Market. The delivery time for in-stock equipment has been reduced to an average of seven days.

Prozorro

In July, 27 contracts were concluded through Prozorro for the procurement of reconnaissance UAVs worth a total of UAH 3 billion — a category where prices roughly doubled earlier this year (see StateWatch’s April monitoring on the drone price surge).

. The largest number of contracted units related to the Autel Evo Max 4T model – 11,000 sets. The most expensive model by average contract price was the DJI Matrice 4T – UAH 181,200 per unit.

UAV procurements announced by the Agency on Prozorro have continued to be subject to restricted access to information on drone quantities and models since June 2026, when this restriction was first introduced. At the same time, the details remain visible on authorised electronic platforms.

Materiel

Key risks:

• absence of participants in procurements of personal protective equipment

In July, DOT did not conclude a single contract for the supply of materiel, as only one procurement was announced in June, which was contracted that same month. At the same time, in July the Agency announced 26 procurements.

Amongst the procurements announced in July, a clause exempting suppliers from penalties for the first seven days after the delivery deadline was removed from draft contracts. Participants requested that the clause be reinstated, noting that it provided a small buffer in the event of delay.

The Agency explained that the clause was removed from the contract in order to ensure the proper and timely fulfilment of contractual obligations. The seven-day period during which penalties did not apply had, in effect, created an additional grace period for performance without incurring liability.

Body Armour

In July, the procurement of 52,000 modular body armour vests worth an expected UAH 1.1 billion was unsuccessful owing to the absence of participants. This concerns three procurements:

• 14,000 body armour vests of configuration 1-11 at an expected price of UAH 30,587.15 per unit;
• 25,000 and 13,000 body armour vests of configuration 1-5 at an expected price of UAH 18,735.34 per unit.

In August, the Agency re-announced the procurements, raising the expected value: by 5.87% (UAH 32,382.5) for configuration 1-11, and by 13.69% (UAH 21,300) for configuration 1-5. However, no participant submitted a bid for these procurements either. Severion Dangadze, founder of UKRTAK.UA LLC – one of the suppliers of personal protective equipment to DOT – reported that in July, the company’s factory and warehouses were completely destroyed as a result of a direct missile strike.

Food Procurement

Key risks:

• selection as winners of companies that have previously supplied substandard products
• dependence of supply on a single manufacturer
• large procurement volumes within a single lot, which limit the pool of potential participants

In July, the Agency concluded 7 contracts for the supply of Catalogue food sets and catering services worth UAH 3.9 billion, with savings of UAH 1.6 billion.

Catalogue Food Products

In July, DOT contracted 31.9 million sets of food products under the Catalogue worth UAH 3.9 billion. Under the contracts, sets were allocated between the Armed Forces of Ukraine (AFU) and the State Special Transport Service (SSTS): 670,000 sets for the SSTS, with the remainder for the AFU.

As a reminder, since January 2026, DOT has also been procuring non-lethal goods on behalf of the SSTS. The SSTS Requirement is met in two ways – through the redistribution of already-contracted sets within existing AFU contracts, and through agreements providing simultaneously for supply to both procurers. The quantity of sets allocated to the AFU remains unchanged, and the released volumes are contracted under subsequent contracts. For further detail, see the June monitoring report by StateWatch.

The largest number of contracts (3 contracts) for the supply of 15.2 million sets was concluded with TRADE GRANITE INVEST LLC at a price of UAH 121.42 per unit. Earlier in the year, the company had been subject to restrictive sanctions imposed by DOT for using an annulled canned-goods testing protocol; however, a court overturned this decision, allowing the firm to resume participation in tenders.

In total, food and catering contracts in July were concluded with 5 companies.

Drinking Water

In June, the Agency cancelled a procurement of 106.7 million litres of water with an expected value of UAH 5.03 per litre owing to identified breaches of statutory requirements. At the end of July, a new procurement was announced for 61.3 million litres with an expected value of UAH 5.52 per litre – 10% above the cancelled procurement.

Compared with the March procurements, the expected value rose by almost 20% – from UAH 4.62 to UAH 5.52 per litre. Competition in this market remains low: 1–2 participants per lot, with only one instance, in 2024, where 4 companies participated in a procurement. Over 2025–2026, the number of competitive tenders declined, likely owing to the large procurement volumes. In H1 2026, PRJSC OBOLON was the sole tender participant, and over 2024–2026 the company secured 95% of water supply contracts worth a total of UAH 4.2 billion.

However, in the new July procurement, some lots were divided into smaller volumes – from 250,000 to 18.9 million litres of water. This made it possible to attract other participants: in addition to OBOLON, LLC VODOGRAY submitted a bid for one of the lots at a lower price, but it was rejected owing to an incomplete set of documents. Contracts were also concluded for two lots with DISH GOOD LLC worth UAH 10.18 million.

Petroleum, Oil and Lubricants (POL)

Key risks:

• dependence of contracts on fluctuations in global oil prices

In July, the Agency concluded 13 contracts with JSC UKRNAFTA for 71,400 tonnes of summer diesel at a price of UAH 55,170 per tonne, for delivery by the end of August. This is 15% 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 July, the Agency also concluded 42 contracts for the procurement of various lubricants and chemical products worth UAH 181.8 million. In total, POL contracts in July were concluded with 13 companies.

Recommendations

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.

*The DOT procurement monitoring is part of a support programme run by the Special Defence Adviser, funded by the Government of the United Kingdom.*