Information current as of 14 May 2025
– In April, the State Logistics Operator signed 36 contracts totalling UAH 3.69 billion.
– Over 56% (UAH 2.08 billion) of the total contract value was allocated to petroleum, oil and lubricants (POL).
– For the second consecutive month, no contracts were concluded for food or catering services.
– In the material supply category, 27 tenders were cancelled due to lack of participants.
– Trade Granite Invest, the company that supplied substandard tinned goods, won its first-instance court case regarding the cancellation of commercial sanctions.
StateWatch analysts examined the effectiveness of April’s procurement activities available on Prozorro and proposed recommendations for process improvements.
In total, during April 2025, the State Logistics Operator announced 80 tenders (219 lots) with an expected value of UAH 4.65 billion. The majority of purchases (UAH 4.25 billion) were initiated under simplified procedures. Throughout the month, 39 companies participated in the tenders, whilst the average number of bids per tender stood at 1.77.
In April, the agency concluded 36 contracts totalling UAH 3.69 billion. The DOT spent over 50% (UAH 2.08 billion) of contracted funds on petroleum, oil and lubricants. Expenditure on material supplies amounted to UAH 1.57 billion (42.5%), whilst UAH 38.62 million (1.04%) was spent on other goods and services. The agency did not sign a single contract for food supplies or catering services during April.
Petroleum, Oil and Lubricants
In April, the DOT concluded 24 contracts for the supply of petroleum, oil and lubricants totalling UAH 2.08 billion. The agency managed to achieve savings of UAH 222.74 million.
Diesel fuel represented the largest share of POL contract value – 37.5 thousand tonnes worth UAH 1.26 billion. All contracts were concluded with UKRNAFTA PJSC.
The agency also contracted petrol worth a total of UAH 487.5 million. This included 7 thousand tonnes of A-80 grade petrol valued at UAH 369.3 million, as well as 1.2 thousand tonnes of A-92 grade worth UAH 64.2 million and 1.08 thousand tonnes of A-95 grade worth UAH 53.9 million. All contracts in this category were also concluded with UKRNAFTA PJSC.
Approximately UAH 42 million was spent on lubricants. The largest expenditure was directed towards purchasing CI-4/SL engine oil at UAH 14.95 million, supplied by EURO OIL PRODUCTION LLC.
UKRNAFTA PJSC remains the primary supplier of diesel and petrol. The DOT has also concluded contracts with seven additional companies for the procurement of oils and lubricants.
Material Equipment
For material equipment procurement, the State Logistics Operator concluded 9 contracts totalling UAH 1.57 billion. Total savings from the procurement results amounted to UAH 72.93 million.
Combat helmets represented the largest contracted value. The agency concluded a contract with TEMP-3000 LLC for the supply of 35 thousand full-size helmets worth UAH 297.15 million (UAH 8,490 per unit). Additionally, contracts were concluded with KM DISTI LLC for the supply of 15 thousand full-size helmets for UAH 127.8 million (UAH 8,520 per unit) and 12 thousand high-cut helmets for UAH 102.84 million (UAH 8,570 per unit).
In April, the DOT contracted 70 thousand protective covers for UAH 837.80 million from Ukrainian manufacturers. The largest contract was signed with MIK LLC for 35 thousand covers worth UAH 414.40 million (UAH 11,840 per unit).
The DOT also concluded three contracts with KHARKIV PLANT OF PERSONAL PROTECTIVE EQUIPMENT LLC totalling UAH 423.40 million for the supply of 35 thousand covers (average price UAH 12,097.14 per unit). It should be noted that in March, the agency had intended to contract NEXTGEN LTD LLC, a representative of British company Tradingscape Limited, for 15 thousand covers, but the tender was cancelled due to the participant submitting false documentation.
Furthermore, in April the State Logistics Operator contracted for the first time 10 thousand lightweight body armour sets (configuration 1-5) for UAH 199.97 million (UAH 19.99 thousand per set) from TEMP-3000 LLC. Lightweight body armour (1-5) weighs between 7.5 and 12 kg and provides basic protection through rigid frontal and rear plates with soft side inserts. In contrast, standard modular models (1-8) weigh between 10.5 and 17.5 kg and, in addition to protection elements identical to the lightweight model, may include neck and groin protection.
The DOT also procured 1 thousand individual camouflage kits from ASTRA LUX PRJSC for UAH 7.41 million (UAH 7.41 thousand per kit).
Overall, contracts in the material equipment category were concluded with five companies in April. TEMP-3000 LLC and KHARKIV PLANT OF PERSONAL PROTECTIVE EQUIPMENT LLC received the largest contract values.
Food and Catering Services
In April, the State Logistics Operator did not conclude any new contracts for food procurement or catering services.
However, in April the DOT announced three tenders for catering services for students at higher education institutions for the second half of 2025. The total expected procurement value amounts to UAH 148.93 million. Winners were determined in two tenders, worth UAH 17.63 million and UAH 9.64 million respectively. The third tender proved unsuccessful.
A procurement (8 lots) was also announced for the purchase of bottled water for the Armed Forces personnel for the second half of the year, with a total expected value of UAH 656.16 million. OBOLON PJSC was determined as the winner for all lots.
Throughout the month, the agency also continued implementing the pilot model within Kyiv Oblast, announcing 145 lots, of which 60 were deemed unsuccessful.
Specifically, it was not possible to determine the current prices for the following product categories:
– Fruit, vegetables and preserves – UAH 28.39 million
– Groceries – UAH 14.73 million
– Dairy products – UAH 3.91 million
– Fish and tinned fish – UAH 3.90 million
– Meat and tinned meat – UAH 3.56 million
– Confectionery – UAH 3.14 million
– Fresh herbs – UAH 2.79 million
In response to StateWatch’s enquiry, the DOT reported that since launching the pilot model, one state contract and 48 tripartite agreements have been concluded – between the agency, manufacturer and supplier for subsequent contracting.
Unsuccessful Procurements
During April 2025, 50 tenders (94 lots) totalling UAH 651.56 million could not be completed. In particular, 3 tenders for the procurement of 50 thousand windproof winter trousers worth UAH 86.23 million did not take place. The tenders failed due to a lack of bids. The expected cost per unit was UAH 1,724.7, approximately 21% lower than the average cost of similar trousers in contracts concluded in 2024 (UAH 2,188).
Due to lack of bids, tenders for the procurement of various other uniform items also failed to proceed, including:
– 105 thousand winter windproof jackets (Type 1) worth UAH 303.45 million (UAH 2,889.96 per unit);
– 200 thousand polo shirts (Type 1) worth UAH 76.53 million (UAH 382.63 per unit);
– 500 thousand men’s underwear worth UAH 41.07 million (UAH 82.13 per unit);
– 200 thousand short-sleeved T-shirts worth UAH 29.96 million (UAH 149.8 per unit);
– 10 thousand special camouflage suits (Type 1) worth UAH 15.77 million (UAH 1,576.56 per unit);
– 100 thousand trouser belts worth UAH 6.81 million (UAH 68.1 per unit).
For all polo shirt procurement lots, OLIMP YEVROTREID LLC submitted bids, but their tender documentation contained violations.
Under the pilot model for determining current food prices, a significant portion of procurements again could not be completed. In total, 60 lots were deemed unsuccessful due to lack of bids.
Challenges
According to the DOT’s response, since the beginning of the year the agency has imposed penalty sanctions on 21 food suppliers totalling UAH 74.46 million. The grounds for their application include violations of product quality requirements, failure to meet delivery deadlines, and inadequate product quantities.
Specifically, due to the supply of falsified food products, primarily dairy products, in the first quarter of 2025 the DOT applied penalty sanctions exceeding UAH 6 million. Of 35 dairy product samples tested, 19 proved to be adulterated – foreign fats were detected in them, directly violating Ukrainian State Standard requirements.
In response to challenges with food product quality and delivery timeliness, in April the DOT expanded the functionality of the DOT-Chain system. Authorised representatives of military units can now file automatic complaints regarding delivery completeness and deadlines directly within the IT system. This will enable faster recording of violations and imposition of sanctions.
A particular challenge for the DOT is suppliers’ court appeals against sanction decisions. For instance, in 2024 the agency terminated early a UAH 2.024 billion contract with TRADE GRANITE INVEST LLC due to the use of an annulled test protocol during the supply of tinned meat to the Donetsk direction. The DOT applied commercial sanctions to the company, prohibiting participation in procurements for up to 12 months.
The supplier disagreed with the agency’s decision and filed a lawsuit in the Commercial Court, demanding the sanctions be declared unlawful. The court granted the claim in full and cancelled the imposed sanctions, including contract termination, the one-year cooperation ban, and suspension of the customer’s obligation fulfilment. The State Logistics Operator is currently appealing this decision.
Furthermore, part of the procurement for determining current prices for various product categories under the pilot food procurement model again could not be conducted. Specifically, 60 lots concerning product categories such as fresh herbs, vegetables and fruit, meat, fish, confectionery, groceries, and long-life products were not completed. Notably, during 2025 under the updated Armed Forces nutrition provision model, penalty sanctions were applied to UT COMPANY LLC for violating state contract terms worth UAH 239.96 thousand.
Also in April, several material supply tenders proved unsuccessful due to lack of participant bids. In particular, it was not possible to procure 50 thousand windproof winter trousers at UAH 1,724.7 per unit. This is approximately 21% below the average cost of similar trousers in 2024 procurements (UAH 2,188), which may indicate ineffective calculation of expected costs.
Recommendations for the DOT based on analysis of April 2025 challenges:
1. Monitor discrepancies between expected product costs and market prices and take measures to correct them.
2. Develop procedures for verifying tender participants’ documentation.
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.