04.11.2025
9min
DOT’s September Procurements: Fuel Price Reductions and Failed Tenders for Thermal Underwear and Field Caps
Share article

Information current as of 9 September 2025

– In September, the DOT announced 84 tenders totalling UAH 5.45 billion.

– 69 contracts worth UAH 3.13 billion were awarded, primarily for petroleum, oil and lubricants (POL) supplies.

– UKRNAFTA JSC remained the primary diesel fuel supplier; however, for the second consecutive month, the company conceded some lots to its competitor, OKKO-EXPRESS LLC.

– VTH-TRADING LLC, which is participating in DOT tenders for the first time, will supply A-80 grade petrol worth UAH 408.62 million. The company is associated with the Kharkiv-based Sun Oil petrol station network and is involved in criminal proceedings concerning the evasion of excise tax during fuel production.

– In September, the agency continued to procure summer uniforms featuring the new MM-25 camouflage pattern due to urgent requirements from the Logistics Forces Command, worth UAH 103.88 million.

– Unsuccessful tenders totalled nearly UAH 900 million; some of these, for the procurement of thermal underwear and field caps, failed due to short submission deadlines – only six working days were allocated for underwear and eight for caps.

In September, the State Logistics Operator announced a total of 84 tenders (126 lots) with an expected value of UAH 5.45 billion. Almost all procurements (96%) were conducted under simplified procedures, totalling UAH 5.23 billion. Throughout the month, 59 companies participated in the tenders, with an average of 1.26 bids per tender.

The agency concluded 69 contracts totalling UAH 3.12 billion in September, based on tender results from that month and previous announcements. The DOT spent nearly half of this amount on petroleum, oil and lubricants. Material equipment expenditure totalled UAH 538.51 million (17.22%), while UAH 119.92 million was spent on other goods and services. Combat rations were contracted for over UAH 101.11 million (3.23%).

Petroleum, Oil and Lubricants

In September, the agency concluded 22 contracts for the supply of petroleum, oil and lubricants (POL), totalling UAH 2.37 billion. The State Logistics Operator achieved savings of UAH 136.56 million.

Diesel fuel for summer use accounted for the largest proportion of the total value of fuel contracts in September, with 49,750 tonnes worth UAH 1.84 billion being supplied (an average price of UAH 37,064.17 per tonne). For the second consecutive month, the primary supplier, UKRNAFTA JSC, lost ground to its competitor in tenders. UKRNAFTA JSC contracted 41,750 tonnes of diesel for UAH 1.54 billion (an average price of UAH 36,925 per tonne), while OKKO-EXPRESS LLC secured the remaining 8,000 tonnes for UAH 303.28 million (an average price of UAH 37,760 per tonne).

The first half of 2025 saw a reduction in summer diesel prices: UAH 32,020-35,750 per tonne in Q1 2025 and UAH 28,950-31,800 in Q2 2025. This decline in prices occurred against the backdrop of OPEC+’s unexpected decision to increase production, as well as the introduction of new customs tariffs by the administration of US President Donald Trump, both of which contributed to lower oil prices on global markets. The agency capitalised on this by concluding contracts at reduced prices.

However, in August, the average price in DOT contracts increased to UAH 38,947 per tonne. This may have been linked to a spike in global oil prices to USD 73 per barrel (Brent) at the end of July, as well as strikes on the Kremenchuk oil refinery. However, the figure decreased by 4.8% in September compared with August, reflecting the general trend of falling global oil prices amid expectations of increased OPEC+ production and forecasts of a market surplus in Q4 2025.

Additionally, the DOT contracted various grades of petrol, including:

– VTH-TRADING LLC: 7,500 tonnes of A-80 grade for UAH 408.62 million (UAH 54,345 per tonne).

– UKRNAFTA JSC: 1,000 tonnes of A-92 grade for UAH 60.75 million (UAH 60,750 per tonne) and 200 tonnes of A-95 grade for UAH 11.01 million (UAH 55,080 per tonne).

– PETROL PARTNER LLC: 350,000 litres of A-98 grade petrol in vouchers for UAH 17.32 million (UAH 49.5 per litre).

VTH-TRADING LLC participated in DOT tenders for the first time. According to the register of court decisions, the company is linked to the Kharkiv-based Sun Oil petrol station network, which is featured in criminal proceedings alleging that it purchased raw materials and components for fuel production from VTH-TRADING LLC on which excise tax was not paid. Sun Oil sells fuel produced in Lithuania, Romania, and at the Kremenchuk oil refinery.

Additionally, the agency contracted 350 tonnes of various types of motor oil for UAH 20.90 million: 200 tonnes of CI-4/SL oil from EURO OIL PRODUCTION LLC for UAH 12.35 million (UAH 61,750 per tonne), and 150 tonnes of M-10G2k oil for use in automotive and tractor diesel engines from RESURS-OIL-A LLC for UAH 8.55 million (UAH 57,000 per tonne).

In September, the agency signed POL supply contracts with seven companies. UKRNAFTA JSC received the contract with the highest value.

Material Equipment

The DOT concluded 31 material equipment procurement contracts, totalling UAH 538.51 million. Total savings amounted to UAH 18.27 million.

Additionally, the DOT signed 10 contracts for the supply of 150,000 insulated suit jackets, worth UAH 188.35 million (average price of UAH 1,252.94 per unit).

ARTTEKS PE offered the lowest price, supplying 10,000 jackets for UAH 12.12 million (UAH 1,211.64 per unit). NIKA-TEKST PLUS LLC will provide the most expensive supply: 10,000 jackets for UAH 12.66 million (UAH 1,266.6 per unit).

Furthermore, in September, the agency continued to procure summer uniforms featuring the MM-25 camouflage pattern due to urgent requirements from the Logistics Forces Command, totalling over UAH 103.88 million. Deliveries under the concluded contracts are scheduled for late November to early December. Specifically, in the following categories:

– Summer special suits: 10,000 units were contracted from MIK LLC (UAH 4,189.98 per unit), whilst 5,000 suits each were contracted from ASTRA LUX PRJSC (UAH 4,198.8 per unit) and NIKA-TEKST PLUS LLC (UAH 4,197 per unit).

– Summer suit trousers: 10,000 trousers were contracted from GALANT SEWING FACTORY LLC (UAH 1,088.28 per unit) and 6,000 trousers from OLTEKS LLC (UAH 1,090.8 per unit).

– Summer field caps: 10,000 caps from PRYLUTSTKA GARMENT FACTORY LLC (UAH 258.3 per unit).

Separately, the DOT contracted ANVA LLC to supply 10,000 MM-25 pattern combat shirts for UAH 9.57 million (UAH 957.78 per unit), and OLTEKS LLC to supply 6,000 combat shirts for UAH 5.75 million (UAH 958.8 per unit).

The agency also signed 11 contracts for the purchase of 322,000 field caps, totalling UAH 22.98 million (an average price of UAH 71.47 per unit).

Material equipment contracts were concluded with a total of 21 companies in September. TEMP-3000 LLC received the largest contract.

Food Procurement

In September, the State Logistics Operator signed three contracts with PYRIATYNSKIY DELIKATES LLC totalling UAH 101.11 million for the purchase of daily combat rations.

Following the procurement results, three contracts were concluded in September for the supply of 219,996 field rations, totalling UAH 101.11 million (UAH 459.6 per ration), which is 0.2% below the initial expected price.

Challenges in September Procurements 

Unsuccessful Tenders

In September, the State Logistics Operator continued to experience issues with unsuccessful procurement procedures. A total of 32 tenders (39 lots) worth UAH 898.34 million were unsuccessful.

Twenty-one tenders in the material equipment category, with an expected value of UAH 257.27 million, were cancelled due to a lack of bids. Specifically, the agency announced tenders three times in September for the supply of 200,000 sets of thermal underwear by 10 December. According to Nashi Hroshi, these procurements took place within the pool of additional tenders announced in accordance with requirements determined by the General Staff.

The first procurement, announced on 1 September, had an expected cost of UAH 381.1 per set. The only potential participant to express interest approached the contracting authority to request an extension to the bid submission deadline, as only six working days remained to prepare the necessary documentation. The company emphasised that the laboratory’s workload made it impossible to obtain test results within the established timeframe and participate in the tender. Despite this, the agency did not amend the procurement terms and the tender did not proceed.

The second attempt, announced on 11 September, involved raising the expected cost to UAH 399; however, no bids were submitted. During the third tender, the expected cost increased to UAH 412 per set, but the delivery deadline remained unchanged at 10 December.

It is worth noting that the first tenders of the year took place in June. The DOT then planned to purchase sets at a price of UAH 347 per unit, but no participant submitted a bid. Despite the subsequent gradual increase in the expected cost, the situation remained unchanged. Throughout the year, the agency has announced 23 tenders for the supply of thermal underwear, of which only three have been successfully completed. Specifically, contracts were signed with:

– VYD SEWING COMPANY LLC – 10,000 sets at UAH 384.06 per unit (with an expected price of UAH 385.08);

– ROZA KNITWEAR FACTORY PRJSC – 20,000 sets at UAH 384.48;

– OLIMP EUROTRADE LLC – 20,000 sets at UAH 330.48.

Separately, in 2024, the agency successfully signed 13 contracts with six companies for the supply of thermal underwear, totalling UAH 500.93 million.

A similar situation involving tight deadlines for submitting documentation was observed during the procurement of 178,000 field caps, worth over UAH 12.85 million (at an expected cost of UAH 72.21 per unit). The tender was announced on 3 September, with bids required by 12 September (only eight working days). One potential participant, probably the only one, expressed a willingness to take part; however, the company did not have a certificate of conformity. They requested an extension to the deadline for submitting documents, but the DOT refused and the procurement ended unsuccessfully.

Additionally, for the third consecutive month, there has been an absence of participants in tenders for the supply of jet engine fuel. Specifically, it proved impossible to procure 1,000 tonnes, expected to cost a total of UAH 52.34 million. Previously, UKRNAFTA JSC had consistently participated in such procurements. However, in July, the tender was cancelled for the first time due to a lack of bids, a situation that was repeated in August. UKRNAFTA JSC’s non-participation was likely due to the summer strikes at the Kremenchuk oil refinery, which may have affected supply stability to some extent, despite most fuel being imported since 2022.

In September, however, the agency re-announced a tender for the procurement of 5,300 tonnes of fuel, worth UAH 245.95 million. Two companies participated in the tender: UKRNAFTA JSC and DZD-TRANS LLC. Although the latter submitted a lower price, its documents did not comply with the tender requirements – the company failed to provide several documents. Ultimately, UKRNAFTA JSC was determined to be the winner of the tender. Dnipropetrovsk-based DZD-TRANS LLC has been attempting unsuccessfully to participate in tenders for the supply of diesel and jet fuel for two consecutive months.

Summer Multicam MM-25

At the end of July, the agency commenced procurement of certain uniform items with the new MM-25 (Multicam) camouflage pattern due to urgent need. This pattern had only been approved on 11 June. The tight deadlines meant that most companies were unable to prepare to participate in the tendering process, resulting in only a limited number of suppliers taking part. This process is discussed in detail in the July monitoring report.

In September, new contracts were concluded for the supply of summer uniforms in the MM-25 pattern, totalling over UAH 103.88 million, with deliveries scheduled from late November to early December.

Despite the objective need for the new pattern uniform, some of the procurement of summer equipment took place at the end of the season. Contracts for the supply of special suits, field caps, and summer trousers were concluded in September, when equipping the military with winter gear should have been the priority.

Recommendations Based on Analysis of Challenges in September 2025

For the Ministry of Defence of Ukraine and the DOT:

1. Facilitate timely and additional market communication regarding upcoming tenders and the necessity of completing sample certification procedures in advance.

For the DOT:

1. Establish broader timeframes for submitting bids that give participants sufficient time to prepare documentation and calculate price offers.

For the Logistics Forces Command:

1. Material equipment procurement should be planned with due consideration for seasonal requirements and suppliers’ production cycles.

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.

If you spot a typo, highlight it with your cursor and click "Report"
Share article
Author

Warning: foreach() argument must be of type array|object, string given in /home/statewat/statewatch.org.ua/www/wp-content/themes/statewatch/single-publications.php on line 348
Close
Error in text

Error: Contact form not found.

Thanks
Error message sent successfully
Close
You're subscribed
Thank you for joining us.
Monthly reviews coming soon!
Close
E-mail Confirmation
Thank you for joining us.
A confirmation e-mail has been sent to the address provided.
Close