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Power struggle in Ukraine’s defense agencies expose management system flaws — military expert

27 January, 2025 Monday
13:25

Serhiy Zgurets, military expert and CEO of the Defense Express media and consulting company, explained that the General Staff of the Armed Forces identifies the army's needs, while the Ministry of Defense is responsible for meeting them

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He discussed the issue on Espreso TV.

"The core issue here is how, in the third year of the war, the country has organized its system for supplying troops with essential weapons and ammunition. Meeting these needs is the Ministry of Defense's job. The General Staff defines the requirements, and the Ministry provides them. The Minister of Defense has the State Rear Operator for fuel and food and the Defense Procurement Agency for ammunition and equipment. Now, a scandal is brewing over the Procurement Agency's efficiency. I spoke to General Staff officials who handle the requirements. They mentioned that, around January 10, a letter was sent to the Minister of Defense," Zgurets explained.

He added that this letter highlighted how the Defense Procurement Agency was buying certain items in quantities far exceeding actual needs and signing contracts with unreasonably long timelines. This directly impacts the combat readiness and operational ability of Ukraine's Armed Forces. The General Staff urged the Minister to address these inefficiencies to ensure timely and adequate delivery of weapons as planned. While the General Staff is responsible for placing orders, this system clearly isn’t functioning.

"Now for the second part – the Minister of Defense and the Defense Procurement Agency are trying to establish some form of collaboration. But it seems like 'the tail is wagging the dog.' The Procurement Agency has enough leverage to influence the Ministry's decisions and justify its actions by claiming everything is being done properly. It's reported that the agency's director, Maryna Bezrukova, had her contract extended by another year with approval from the Supervisory Board. However, this decision appears flawed. Officially, the extension is tied to the ongoing audit. Perhaps during this time, the board will understand what’s going on within the agency. But realistically, the board lacks the expertise and resources to fully process this data. This situation is a mess. The board should’ve analyzed the agency's performance before deciding on the director’s future," the expert commented.

In his view, there is now a power struggle because the Minister of Defense temporarily appointed Arsen Zhumadilov, head of the State Rear Operator, to oversee the Procurement Agency. Meanwhile, Bezrukova relies on the Supervisory Board's decision to conduct an audit.

"The audit is pointless. Audits involving NATO countries take time and money, but, more importantly, they require detailed knowledge of every contract – and each contract has its own complex backstory: intermediaries, connections, and so on. I doubt the audit will uncover the reasoning behind these decisions. Right now, we’re stuck in a stalemate. It's unclear whether Bezrukova will step down, the Minister of Defense will resign, or whether the National Security and Defense Council or the president will have to step in to untangle this 'Gordian knot.' This deadlock highlights the failure of the management system in the third year of the war, at a time when the most critical resources – ammunition, equipment, and supplies for soldiers on the frontlines – should be top priority," Zgurets concluded.

Background

On January 24, Ukrainian Defense Minister Rustem Umerov announced personnel changes and the overhaul of the supervisory board at the Defense Procurement Agency due to what he called "failed work." Umerov submitted a request to the Cabinet of Ministers for the dismissal of his deputy, Dmytro Klimenkov, and stated that the Ministry of Defense would not renew the contract of the agency's current director, Maryna Bezrukova.

"Arsen Zhumadilov will be appointed as the director of the Defense Procurement Agency. This year, the Defense Procurement Agency and the State Rear Operator worked under the same conditions. One agency delivered results; the other only created media noise," Umerov remarked.

Zhumadilov currently serves as the general director of the State Enterprise "State Rear Operator."

However, on January 25, the Defense Procurement Agency announced that, despite Umerov's decision, it would continue operating under Bezrukova's leadership. The agency's Supervisory Board had signed a new one-year contract with her.

The Public Anti-Corruption Council under the Ministry of Defense has called on the National Security and Defense Council and the country's political leadership to "immediately intervene" in the situation surrounding the Defense Procurement Agency's leadership.

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