The Accounting Chamber found discrepancies in defense procurement totaling almost 350 billion UAH
The Accounting Chamber, based on the results of an audit of procurement and development of weapons and military equipment, established discrepancies with legal requirements totaling almost 350 billion UAH. More than 90% of the audited procurement volume of almost 580 billion UAH was conducted without competitive procedures, and accounts receivable under state contracts reached 367 billion UAH at the beginning of 2026.
The Accounting Chamber approved a report based on the results of an audit, the objects of which were the Ministry of Defense, the General Staff of the Armed Forces of Ukraine, the Administration of the State Border Guard Service and the state enterprise "Defense Procurement Agency".
The audit covered 2025, and for contracts under which accounts receivable were already recorded as of January 1, 2025, also 2024.
At the same time, the Accounting Chamber emphasizes precisely the "cost measurement of discrepancies". That is, almost 350 billion UAH cannot be interpreted as the sum of established embezzlements or losses caused to the state.
More than 90% of procurement was conducted without competition
The total volume of procurement analyzed by auditors was about 614 billion UAH. Of this, over 90%, or almost 580 billion UAH, was procurement without the application of competitive procedures.
Auditors identified problems at almost all key stages of the procurement cycle: in determining needs, planning financing, selecting the procurement method, forming prices, concluding and executing contracts.
Among the recorded issues - purchase of weapons and military equipment at a cost higher than that determined by the list of defense procurement, deviations from delivery terms and volumes, problems with product quality, as well as management of advance payments and protection of state property interests.
The Accounting Chamber also noted the instability of the regulatory environment. During martial law, the basic legislative and governmental acts in the field of public and defense procurement were amended a total of 95 times.
Contract debt reached 367 billion UAH
As a separate problem, auditors named significant volumes of prepayment under state contracts, which did not always ensure the receipt of the envisaged weapons and military equipment in a timely manner.
As of January 1, 2026, accounts receivable under contracts for the development and procurement of weapons and military equipment amounted to 367 billion UAH.
Of this amount, 66 billion UAH was overdue receivables.
At the same time, in the first half of 2026, it was significantly reduced: overdue receivables decreased by 62 billion UAH.
The state was unable to enforce most arbitration awards abroad
The Accounting Chamber also drew attention to the effectiveness of claim and lawsuit work on problematic contracts.
Courts reduced the penalties claimed by the state for recovery by a total of 5.9 billion UAH. This accounted for over 66% of the value of the corresponding claim requirements.
Even more complicated was the situation with the enforcement of arbitration awards abroad. Of the 45 decisions submitted for recognition and enforcement in other countries, 42, or 93%, remained unexecuted.
At the same time, after problems were identified, over 100 million UAH of overpaid funds under one of the contracts concluded under state guarantees were reimbursed and transferred to the state budget. Claim and lawsuit measures were also taken against contractors who failed to fulfill their obligations.
Audit results will be handed over to law enforcement
Based on the results of the review, the Accounting Chamber recommended strengthening strategic and financial planning of defense procurement, improving pricing rules and selection of procurement procedures, as well as control over contract execution and use of advance payments.
Information on the audit results is to be sent to the President, the Verkhovna Rada, the Cabinet of Ministers, the National Security and Defense Council, the Prosecutor General's Office and the Security Service of Ukraine.
The full report will not be published as it contains information constituting a state secret.
Based on materials from: The Accounting Chamber of Ukraine
