Ukraine faces defense procurement delays due to financial bottleneck — military expert Zgurets

He shared the information on Espreso TV.

"The Defense Procurement Agency (DPA) is a state enterprise tasked with fulfilling the Ministry of Defense’s orders as directed by the General Staff. This means ensuring the needs of the Armed Forces of Ukraine (AFU) as determined by the General Staff. The Ministry of Defense, through the Defense Minister, relies on this state enterprise to implement procurement and supply plans for weaponry," noted Zgurets.

According to the military expert, last year the DPA procured weapons worth more than 300 billion hryvnias. Of these, 60% have been delivered, while the rest will be supplied at the beginning of this year. However, funds for weapons procurement are allocated in portions every quarter. In January, 19 billion hryvnias were allocated for further arms contracting. These funds are currently not being used, which is creating an "organizational and financial bottleneck" and slowing down the signing of contracts needed by the AFU.

"Therefore, NAUDI stated that the situation is extremely negative because, firstly, these funds are not being spent, contracts are not being signed, and 80 enterprises that provide 30% of the supply of weapons, equipment, and gear for the Armed Forces of Ukraine currently have no contracts. Moreover, they have not been paid for previous arms deliveries. This is a consequence of the bureaucratic obstacles surrounding the DPA," emphasized Zgurets.

The military expert added that the Association of Defense Enterprises is now relying on the president to intervene in this matter.

"It is strange that the Supreme Commander-in-Chief has been ignoring such a pressing issue for so long — one that directly affects the military's ability to conduct combat operations on the front line, which falls within his competence and responsibility. I hope this situation will be resolved," Zgurets concluded.

Defense Procurement Agency leadership crisis

On January 24, Ukraine’s Minister of Defense Rustem Umerov announced personnel changes and the relaunch of the supervisory board of the Defense Procurement Agency (DPA) due to its "failed work." In particular, 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 extend the contract of the current DPA director, Maryna Bezrukova.

"Arsen Zhumadilov will be appointed as the new DPA director. This year, the DPA and the State Logistics Operator had the same conditions. One agency did its job, while the other merely created media noise," Umerov emphasized.

However, on January 25, the Defense Procurement Agency announced that, despite the decision of Defense Minister Rustem Umerov, it would continue its work under the leadership of Maryna Bezrukova. The DPA's supervisory board signed a new one-year contract with her.

The Public Anti-Corruption Council at the Ministry of Defense called on the National Security and Defense Council (NSDC) and the country’s political leadership to "immediately intervene" in the situation regarding the director of the Defense Procurement Agency.