President of Ukraine Volodymyr Zelenskyy with Rusten Umerov in September 23, when he appointed him Minister of Defence Photo: OP
A scandal is unfolding in Ukraine over the Defence Procurement Agency (DPA) and its conflict with Defence Minister Rustem Umerov. The confrontation, which covers personnel decisions, procurement efficiency and the risks of manual management, could have significant consequences for the country’s defence capability, DW reports.
Causes of conflict and personnel decisions
Last week, Ukraine’s Defence Minister Rustem Umerov said that he would not extend the contract with the director of the Defense Production Plant, Maryna Bezrukova, despite the Supervisory Board’s decision to extend her powers. In addition, Umerov initiated an internal investigation and Bezrukova’s suspension.
However, Bezrukova herself stated that she continues to perform her duties. According to the Unified State Register, on 25 January, Arsen Zhumadylov, who previously headed the State Logistics Operator, was registered as the official head of the defence enterprise. Additionally, on 28 January, at Umerov’s request, the Cabinet of Ministers dismissed Deputy Defence Minister Dmytro Klymenkov, who was responsible for procurement.
What’s wrong with procurement?
The Defence Procurement Agency was officially launched in 2023 with a budget of $7.81 billion. It was created as an independent body within the Ministry of Defence, controlled by the Supervisory Board, which was supposed to ensure transparency of procurement and minimise political influence. However, at the end of 2023, Umerov amended the charter of the Defence Agency, which gave the Ministry of Defence the right to appoint the management without the approval of the Supervisory Board in case of a threat to national security.
The defence minister justified his decision to change the leadership by saying that the agency had not provided the army with the necessary weapons in full and that it was leaking information about procurement. “Instead of providing the army with ammunition in a timely manner, we have received political games and contract leaks,” Umerov said.
Reaction of the Supervisory Board and experts
The members of the Supervisory Board of the Defence Agency disagree with the Minister’s position and consider his actions to be “manual control” that undermines the defence procurement reform. Experts warn that such decisions could affect the trust of international partners and the transparency of military contracts.
The head of the Verkhovna Rada’s Anti-Corruption Committee, Anastasiya Radina, called on Umerov to resign, and the Anti-Corruption Action Centre (AntAC) filed a complaint with NABU regarding possible abuse of power.
What’s next?
The conflict is only gaining momentum. Experts fear legal uncertainty that could lead to the blocking of important defence contracts. The G7 countries have already intervened in the situation, calling on the Ukrainian authorities to adhere to the principles of transparency and corporate governance.
Further developments will show whether the government will be able to find a compromise on this critical issue or whether the conflict will threaten the stability of Ukrainian defence procurement in the midst of war.
