Prepayment system for military procurement has been improved

27 Березеня 2025

On February 11, 2025, the Cabinet of Ministers of Ukraine adopted a resolution enhancing the prepayment system for military procurement.

Under the new framework, advance payments for state defence contracts shall be made by the Defence Procurement Agency with the approval of the Ministry of Defence, in accordance with budgetary legislation.

These prepayments may not exceed 70% of the total contract value and are limited to a maximum period of 24 months. The Defence Procurement Agency will determine the amount, duration, and number of advance payment instalments within this timeframe.

By strengthening oversight, the Ministry of Defence aims to enhance efficiency and responsiveness in the procurement process, ensuring it aligns with Ukraine’s strategic military objectives.