Ukraine Expands Powers of Defense Procurement Agency for Faster International Acquisitions

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The agency can now use state budget funds to cover logistics, customs, and banking expenses for foreign defense contracts.

The state-owned enterprise of the Ministry of Defense, the "Defense Procurement Agency," can now use state budget funds to pay for additional services related to the execution of defense contracts.

This was reported by the Ministry of Defense of Ukraine. The expansion of the agency’s powers is expected to speed up the defense procurement process, especially abroad, which directly affects Ukraine’s defense capability.

At the initiative of the Ministry of Defense, the Cabinet of Ministers of Ukraine amended the relevant regulation. The updated document allows the DPA to allocate budget funds for:

  • customs duties;
  • transport and forwarding services;
  • logistics, brokerage, and agency services;
  • commission fees;
  • expenses related to opening and maintaining accounts in foreign banks.

“The DPA currently holds thirty contracts with manufacturers from thirteen countries. This resolution will enable the implementation of international procurement projects for ammunition and weaponry from global manufacturers, and ensure their logistics across EU territory,” explained Hlib Kanevskyi, Director of the Procurement Policy Department of the Ministry of Defense of Ukraine.