Ukrainian companies account for 80% of army supply contracts, defense ministry says.

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Domestic producers account for over 80% of the total volume of materiel contracts for the Ukrainian Armed Forces, the Defense Ministry reported on Aug.

16. Contracts with Ukrainian manufacturers have reportedly increased since the Defense Ministry in December 2023 established the State Logistics Operator (DOT), a new procurement agency responsible for all non-military purchases, such as food, fuel, and clothes. Since its founding, DOT has engaged 28 new Ukrainian companies to provide the military with essential supplies, the ministry said.

"Due to the increased competition, we see the quality of goods for the Armed Forces improving and the price decreasing at the same time," said Deputy Defense Minister Dmytro Klimenkov. "This is an important aspect of our strategy, as transparent procurement rules provide a wider choice of suppliers and create conditions for innovation. Our goal is to supply the military with everything they need, using state resources efficiently."

Domestic suppliers are now providing the army with chemical hot water bottles, which offer servicemembers an alternative heat source. The hot water bottles were previously produced in China for twice the price. The Defense Ministry reported that the domestic hot water bottle contract saved 12.5 million hryvnias (approximately £304,364).

DOT also signed a contract with a Ukrainian company that produces women's summer field uniforms and ponchos. The company has collaborated with European firms and produced uniforms for EU institutions. DOT was founded in part to combat corruption in military procurement.

Scandals in procurement of clothing and food supplies for the army led to the dismissal of former Defense Minister Oleksii Reznikov in September 2023. Even under DOT, the Defense Ministry has reportedly spent millions on supplies for the army at triple the market rate, according to media investigations.

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