Fuel Crisis and Suspect Chinese Goggles: What the DOT Procured in February

Information current as of 26 March 2026.

– In February, the DOT concluded 109 contracts totalling UAH 15.7 billion, with over 60% of funds allocated to unmanned aerial vehicles (UAVs).

– From March 2026, UAV requirements will be defined based on technical specifications, without reference to specific models or manufacturers.

– Against the backdrop of escalating hostilities in the Middle East, fuel prices in February contracts rose by 10%, whilst contracted volumes fell by 9%.

– For the first time, the agency procured women’s thermal underwear worth over UAH 51 million.

– The DOT purchased 90,000 Chinese ballistic goggles from Kyiv-based intermediary TS Trade Ukraine LLC for UAH 61.2 million. The same supplier had previously delivered substandard Chinese goggle-masks to the Armed Forces of Ukraine (AFU).

In February, the DOT Defence Procurement Agency (DOT) announced 78 tenders (113 lots) with an expected value of UAH 7.7 billion. The largest share – UAH 4 billion – consisted of tenders for petroleum, oil and lubricants (POL). Over 95% of all procurements were conducted under simplified procedures (Ukraine’s expedited procurement mechanism). A total of 94 companies participated in the tenders, with an average of 1.8 bids per tender. Food procurement tenders proved the most competitive.

In February, the DOT concluded 109 contracts totalling UAH 15.7 billion, based on tender results announced both in February and in prior months. Over 60% of contracted funds were allocated to UAVs. This figure excludes both the agency’s undisclosed direct contracts and procurements made through DOT-Chain Defence (the DOT’s direct defence supply programme). Expenditure on materiel amounted to UAH 2.7 billion, whilst POL accounted for UAH 2.6 billion and food services for UAH 902 million.

From March 2026, the General Staff is changing its approach to drone procurement. UAV requirements will be drawn up based on tactical and technical specifications (TTS), without reference to specific models or manufacturers, and will be informed by quality data from the battlefield. In previous research, StateWatch highlighted the risks inherent in the DPA’s direct UAV contracting procedures, under which models were procured primarily by name rather than by specification. StateWatch had recommended that technical specifications be incorporated into procurement lists and volume requirements, in order to reduce the scope for favouring specific manufacturers.

The agency also reported that, over the seven months since DOT-Chain Defence became operational, the armed forces had received over 500,000 items – comprising FPV drones, ground robotic systems, electronic warfare (EW) systems, and interceptor drones – with a total supply value of UAH 23.3 billion. The system’s catalogue already covers nearly 500 product types from over 140 Ukrainian manufacturers, and is being progressively expanded to include UAV munitions.

In total, the DOT signed 30 UAV supply contracts in February – all published on Prozorro (Ukraine’s public e-procurement platform) – worth UAH 9.4 billion, achieving savings of UAH 1.5 billion. The most widely procured model was the Autel Evo Max, with 30,000 units contracted across two variants. These drones are designed for deep-rear reconnaissance of enemy positions and artillery fire correction. The most expensive variant, the Autel Evo Max 4N, carried an average contract price of UAH 210,667 per unit.

The agency also reported that, over the seven months since DOT-Chain Defence became operational, the armed forces had received over 500,000 items – comprising FPV drones, ground robotic systems, electronic warfare (EW) systems, and interceptor drones – with a total supply value of UAH 23.3 billion. The system’s catalogue already covers nearly 500 product types from over 140 Ukrainian manufacturers, and is being progressively expanded to include UAV munitions.

Materiel

– The award of a contract to a company involved in criminal proceedings relating to the inflation of food prices.

In February, the DOT signed 32 contracts for the supply of uniforms and equipment worth UAH 2.7 billion, achieving savings of UAH 392 million.

– The absence of clear conformity verification requirements for products, particularly with regard to the completeness of the documentation submitted for a given set.

Body Armour

Between October 2025 and March 2026, the agency concluded five contracts for body armour totalling approximately UAH 2.4 billion, covering 73,170 sets. Approximately 14% of these contracts have been fulfilled to date, limited to agreements signed in October. The remainder of deliveries are still pending, with the bulk of volumes expected in autumn and winter 2026.

The largest body armour contract went to Kharkiv Personal Protective Equipment Plant LLC (KhPPEP), which is contracted to supply 50,000 body armour sets (configuration 1–11) worth UAH 1.5 billion at an average price of UAH 29,659 per set – more than 20% below the expected value.

Thermal Underwear

The agency also procured women’s thermal underwear for the first time, contracting 50,000 sets each of mid-season and cold-weather variants. As of September 2025, 54,000 women serve in the AFU. However, the contracted volume is insufficient to equip all servicewomen, as the Materiel Provision Standards approved by MoD Order provide two sets per person.

The DOT also contracted 1.1 million sets of men’s mid-season thermal underwear worth over UAH 513 million. One of the suppliers, Olimp Yevrotreid LLC, was awarded a contract at the lowest unit price – UAH 448.2 per unit for a batch of 140,000 units. Olimp Yevrotreid had previously supplied winter thermal underwear to the DOT; however, according to the Federation of Employers of Ukraine, the garments failed to retain heat, had poor elasticity, and caused discomfort during movement.

Ballistic Goggles

In February, the agency purchased 90,000 ballistic goggles from Chinese distributor TS Trade Ukraine LLC for UAH 61.2 million (UAH 680 per unit). The manufacturer is Guangdong Yijia Optical Technology Co., based in Guangzhou.

This is not the first contract between TS Trade Ukraine LLC and the DOT. In September 2024, the company was contracted to supply 18,000 goggle-masks from the same manufacturer. The delivered goods failed to meet the stated protective specifications and did not provide adequate protection against fragmentation. This is the subject of criminal proceedings before the State Bureau of Investigations (SBI). The investigation also established that the Ministry of Defence sustained losses of UAH 25.7 million.

A total of 16 companies received materiel contracts in February.

Ballistic Goggles

Petroleum, Oil and Lubricants

Key risks in the POL category:

– exposure of contracts to fluctuations in global oil prices;

– a reduction in contracted volumes, which could lead to a shortfall in essential fuel supplies.

In February, the agency signed 29 POL contracts worth UAH 2.6 billion – all concluded before the Middle East escalation.

Key risks in the POL category:

The largest single commitment was for arctic-grade diesel: UAH 1.6 billion contracted with Ukrnafta JSC (Ukraine’s state oil and gas company) for 35,000 tonnes at UAH 45,970 per tonne. However, following the rise in oil prices, eight of these contracts were amended in March: the price was increased by 10% to UAH 50,560 per tonne, whilst volumes were reduced by 9% to 31,800 tonnes. This is permitted under Article 41(5)(2) of Ukraine’s Law on Public Procurement, as well as under Cabinet of Ministers Resolutions Nos. 1178 and 1275, which set out the specific provisions for procurement under martial law.

Price increases were likely partially contained by previously contracted deliveries at lower prices and by the procurement being channelled through the state-owned Ukrnafta JSC. A further mitigating factor is that fuel for military needs is procured on a VAT-exempt basis, resulting in end prices lower than those at commercial filling stations.

In mid-February, the DOT also contracted 1,500 tonnes of A-92 petrol worth UAH 95.5 million. Within a month, a supplementary agreement reduced the volume by 8% whilst increasing the per-tonne price by 9% to UAH 69,460. A similar pattern emerged for A-95 petrol: 2,000 tonnes were procured for UAH 115.8 million, though for a batch of 500 tonnes the volume was subsequently cut by 7% with the price correspondingly raised to UAH 62,063 per tonne.

Against this backdrop, the agency issued a request for price quotations to assess current market rates. New tenders for summer-grade diesel were subsequently announced with an expected value of UAH 83,590 per tonne. The agency also procured 6,000 tonnes of A-80 petrol at UAH 57,195 per tonne and 7,000 tonnes of jet fuel at UAH 46,940 per tonne.

Ukrnafta JSC remains the principal supplier of diesel and petrol. The agency also concluded contracts with five additional companies for lubricants and chemical products.

Key risks in the food procurement category:

– Price dumping, which could lead to supply disruptions.

– The award of contracts to companies that have previously supplied substandard products.

At the end of 2025, the agency completed large-scale food procurement to supply the AFU throughout 2026. Despite this, additional tenders were announced in January and three contracts worth UAH 901.5 million were concluded. The need for supplementary procurement likely arose from abnormally low bids in prior contracts, which may have jeopardised supply delivery. The new contracts cover 21.4 million food sets for military personnel and 2,160 sets for service animals. The expected value was UAH 171.5 per set; however, actual prices in the concluded contracts were significantly lower – averaging UAH 122 per set, approximately 25% below the expected value.

Grand Consult LLC was the largest recipient of Catalogue (Ukraine’s standardised military ration system) contracts concluded in February, receiving UAH 584.5 million. The company features in criminal proceedings known in Ukraine as the “UAH 17 eggs” case – concerning price inflation in food supplies to the AFU at the outset of the full-scale invasion. Until November 2024, the firm was owned by Tetiana Hlyniana, who is currently subject to a wanted notice issued by the National Anti-Corruption Bureau of Ukraine (NABU).

In February, the DOT also purchased 3,330 bottles of drinking water for nearly UAH 500,000, to be supplied by IDS Aqua Service LLC. The company was previously affiliated with Alfa Group, whose key principals are Russian oligarchs Mikhail Fridman and Andrei Kosogov. IDS Aqua Service LLC is currently under the management of the Asset Recovery and Management Agency (ARMA).

A total of three companies supplied food and water under contracts concluded in February.

Key risks in the food procurement category:

Seven lots worth UAH 180.8 million in the UAV category were unsuccessful. The agency was unable to procure 1,400 Mavic 3E units at an expected value of UAH 129,133 per unit. Only one bidder participated, and its proposal did not meet the technical requirements.

In the absence of bids, procurement of 110,000 short-sleeved T-shirts also failed – 30,000 adaptive variants at UAH 405.24 per unit and 80,000 standard variants at UAH 210 per unit. The same issue had prevented the procurement of 111,000 identical T-shirts in January.

Separately, five lots for 16 million sets of disposable tableware worth nearly UAH 140 million were cancelled. Ekviportorg LLC had submitted the most competitive bid, but it was rejected on the grounds that its supporting documentation did not demonstrate the required experience with comparable contracts. The company challenged this decision in court, and the court ordered the agency to reverse it. However, as the procurement system lacked the technical capability to implement the ruling, the DOT cancelled the procedure in its entirety in order to remedy the breach.

State Audit Service Monitoring

The State Audit Service of Ukraine (SAS) identified violations in an October food procurement procedure – one of the largest such procedures, worth approximately UAH 37 billion, intended to cover supplies to all government-controlled regions throughout 2026. SAS found that the DOT had imposed, without adequate justification, a restriction on the number of lots any single bidder could win – capped at two per procedure. The service had flagged similar practices previously: in June, the DOT had required that a single participant could win no more than one lot where multiple lots were included in a single procedure. The agency maintains that these restrictions prevent supply disruptions, and in response has simply raised the per-winner cap from one lot to two.

The SAS monitoring report also refers to Trade Granite Invest LLC – a supplier with a prior record of delivering substandard tinned goods. In one tender, the company failed to confirm the availability of warehouse space for the full duration of the supply period. Nevertheless, the agency not only refrained from rejecting the bid but proceeded to sign a Catalogue food supply contract with the company worth UAH 1 billion. Trade Granite Invest LLC had previously been subject to DOT procurement sanctions for one year, following its use of an invalidated testing certificate for tinned goods. Those sanctions have likely since expired.

A similar warehousing issue arose with Flavakor LLC, which likewise failed to confirm adequate storage capacity, yet the DOT proceeded to conclude a contract. SAS has demanded that the contract be terminated; the agency is contesting this in court.

This StateWatch monitoring report covers exclusively those procurements published on Prozorro. Direct contracts and other acquisitions – including weapons and military equipment subject to state secrecy or not otherwise published on the platform – fall outside its scope. Hence, the contract figures and values presented reflect only a portion of the DOT’s total contracted volume.