Only 1% of MoD suppliers are under sanctions for violation of contracts – DOT

Only about 1% of the suppliers of the procurement agency of the Ministry of Defense of Ukraine, the State Logistics Operator (DOT), have been subject to restrictive measures due to contract violations. This was stated in a commentary to Ukrinform by Dmytro Bihunets, deputy head of the commission on reorganization of the State Enterprise DOT.

"If we talk about unique cases of restrictive measures, it is somewhere around plus or minus 1%. For the period from October 2024 to June 2025, we had to exclude only seven companies from the list of suppliers if there were grounds for doing so," explained Rununets.

He added that after the decision to exclude a company from procurement is made, it has five days to appeal. If the decision is confirmed, the supplier is disqualified for one calendar year.

The main reasons for the imposition of sanctions are non-fulfillment of contracts, supply of low-quality or counterfeit products, and violation of anti-corruption requirements. In particular, this may include the use of raw materials from the aggressor country (Russia), Belarus or Iran.

At the same time, companies can get out of the sanctions if they pay fines, drop lawsuits against the DOT and take on anti-corruption obligations. Restrictive measures can be lifted ahead of schedule, but not earlier than three months after they are imposed.

"If the supplier violates the conditions again within a year after being restored to the list, it will be subject to a stricter approach," the DOT representative warned .

Work is also underway to create a similar "sanctions track" for unscrupulous suppliers of weapons and military equipment purchased by the State Enterprise "Defense Procurement Agency".

"We cannot neglect procurement because of anti-corruption or compliance rules. For example, if there is no criminal or sanction case, but there are doubts about timely delivery due to force majeure, or the manufacturer fails to produce mines but has other good ammunition, should we refuse them? We need to take a very differentiated approach. Therefore, together with the procurement department of the Ministry of Defense, we are working on the criteria for the formation of a "black list" for the AOZ to maintain the supply of the army," explained Bihunets .

• In the second half of 2025, the DOT plans to purchase UAH 22.5 billion worth of food for the Armed Forces and introduce mandatory laboratory tests.
• In late May, the Defense Ministry initiated an update of the product catalog for the Armed Forces with a focus on Ukrainian goods and the real needs of the military.