Photo: mil.gov.ua
The Ministry of Defence of Ukraine’s procurement agency, the State Logistics Operator (DOT), is expanding opportunities for suppliers by improving the regional model of fuel procurement for the Armed Forces of Ukraine. The number of lots has been doubled, which will increase competition and optimise logistics. This was reported by the Ministry of Defence.
How is the procurement system changing?
Previously, the regional model included four large lots (Eastern, Southern, Central and Western regions), each covering four to six supply points. From now on:
✔ Eight smaller lots with 1-2 delivery points each.
✔ Reduction in the amount of fuel required to participate in the auction, which will attract new suppliers.
✔ Optimisation of logistics and increased supply efficiency.
According to Maryna Yeremieieva, Director of the Fuel and Fuels Programme at DOT, the fuel market in Ukraine is operating under significant security risks due to the constant threat from Russia. Suppliers cannot store large volumes of fuel in the country, so splitting lots reduces risks and facilitates access to the market.
“Reducing the volume of fuel for one lot allows more participants to join, which stimulates competition. This helps to save budget funds and provide the army with the necessary resources,” the Ministry of Defence said.
Model effectiveness: the numbers speak for themselves
Based on the results of the last auction:
- Single-bid lots saved 2.7% of the expected value.
- Lots with multiple bidders – 7.5% savings.
In 2024, the State Treasury procured fuel and lubricants for UAH 28.2 billion, and further improvement of the procurement mechanism will ensure stable supplies for the military even in times of war.
