Functioning of the public procurement system in Ukraine in the context of war

Issue: № 9, 2025

Doi: https://doi.org/10.37634/efp.2025.9.21

The full-scale invasion of Ukraine has profoundly impacted the operation of the public procurement system, a fundamental mechanism for fulfilling state and societal requirements. Under the extraordinary conditions imposed by martial law, it became imperative to adapt procurement procedures swiftly to ensure national defense, maintain critical infrastructure, and address humanitarian needs. The Law of Ukraine “On Public Procurement” establishes the legal and economic framework for the acquisition of goods, works, and services by state and municipal entities, aiming to promote efficiency, transparency, competition, and alignment with European Union standards. In October 2022, the Cabinet of Ministers of Ukraine enacted a resolution specifying special procurement procedures applicable during martial law and for 90 days following its cessation, introducing adjusted thresholds for open tenders, accelerated timelines for procurement and appeals, expanded use of electronic catalogs, and provision for direct contracting under urgent circumstances. Additional measures include flexible contract amendments, enhanced mechanisms for addressing non-compliance, and prohibitions on procurement involving Russian and Belarusian entities. Empirical data for 2022 - 2024 indicate the resilience of the system, with high completion rates of announced procurements exceeding 95%, demonstrating both procedural stability and operational effectiveness amid conflict conditions. Optimization strategies emphasize rigorous needs and market analysis, consolidation of procurements, and the promotion of small and medium-sized enterprise participation, thereby fostering competitive outcomes. The ongoing modernization of Ukraine’s public procurement system under wartime conditions underscores its role not only in ensuring prudent allocation of public resources but also in reinforcing institutional transparency, public trust, and alignment with international governance standards.

Keywords : public procurement, martial law, electronic procurement system, customers

References:

1. The Supreme Council of Ukraine. Law of Ukraine «On Public Procurement». URL: https://zakon.rada.gov.ua/laws/show/922-19#Text (in Ukrainian).

2. The Supreme Council of Ukraine. Resolution of the Cabinet of Ministers of Ukraine. «On approval of the specifics of public procurement of goods, works and services for customers provided for by the Law of Ukraine ’On Public Procurement». URL: https://zakon.rada.gov.ua/laws/show/1178-2022-%D0%BF#Text (in Ukrainian).

3. PROZORRO. Explanation of the specifics of public procurement during the period of martial law. URL: https://surl.li/ozcdfv (in Ukrainian).

4. Ministry of Economy of Ukraine. Public procurement reports. URL: https://me.gov.ua/Documents/List?lang=uk-UA&id=ca5d0012-c7f9-4750-b1f8-cf5550ecb270&tag=Zviti (in Ukrainian).

5. Petyk L.O., Batsman I.V. Public procurement under martial law. Problems of modern transformations. Series: Economics and Management. 2023. № 9. URL: https://doi.org/10.54929/2786-5738-2023-9-08-03 (in Ukrainian).

Download paper