A single agency instead of two: how the defense procurement system of the Armed Forces will change from 2026

From January 1, 2026, a new stage of the defense procurement reform will start in Ukraine, which provides for the centralization of all procurement for the Armed Forces. From now on, the supply of weapons, military equipment, clothing, ammunition, food, fuel and lubricants and other resources will be carried out by a single Defense Procurement Agency of the Ministry of Defense of Ukraine.

Defense Minister Denys Shmyhal announced the launch of the updated model. According to him, such a system creates a single point of responsibility in the field of army supply and allows for the implementation of a comprehensive supply strategy. At the same time, the Ministry of Defense, as before, will be responsible for forming a policy in the field of defense procurement and exercising control over its implementation.

The minister also emphasized that the supervisory board of the Defense Procurement Agency will continue its work. During January 2026, it is planned to fill vacant positions in its composition on a competitive basis, which should ensure continuity of supervision and additional safeguards of transparency.

Denys Shmyhal recalled that the defense procurement reform has been ongoing since 2023 and has already demonstrated practical results. During this period, the system has moved away from paper bureaucracy, and instead, a modern digital infrastructure has been built that covers key defense support processes.

The minister called the implementation of the DOT-Chain system one of the key achievements of the reform. Thanks to it, it was possible to digitize about 70% of document flow in the field of arms and logistics supplies. Other results include the transition to advance planning of needs and contracting, the establishment of direct interaction with military units, as well as systematic work with the supplier market.

According to the head of the Ministry of Defense, in 2026 the procurement agency will maintain a strategic focus on digitalization, scaling the DOT-Chain and strengthening the role of the military in decision-making. This is planned to be implemented through fast and targeted feedback tools. “We continue to build a clear, transparent and effective defense procurement system,” the minister concluded.

Recall that from January 1, 2026, the Ministry of Defense merged the Defense Procurement Agency and the State Logistics Operator into one procurement organization. At the same time, such a decision was criticized by the Public Anti-Corruption Council under the Ministry of Defense, which opposed the merger or absorption of the agencies in any form.

The GAR of the Ministry of Defense stated that the risks of such a merger significantly outweigh the possible benefits. They emphasized that the two agencies operate in different markets, use different contract models, and combining different types of procurement in one structure could negatively affect the transparency of processes and increase corruption risks. In addition, the Anti-Corruption Council noted that although one of the declared goals of the merger was to save money, it is currently unclear through what mechanisms it should be achieved.