**Kyiv**: Ukraine is aligning its public procurement processes with EU standards to enhance transparency and efficiency, while minimising corruption. Legislative changes are underway to ensure compliance, demonstrating Ukraine’s commitment to meeting EU criteria despite ongoing challenges amidst the war.
Ukraine is making significant preparations for its prospective membership in the European Union, with a focus on aligning its legislation with EU norms, particularly in the area of public procurement. This aspect of governance has gained attention due to its critical role in evaluating the efficiency of state management and the effective utilisation of budget funds.
Public procurement serves as a litmus test for governmental efficacy, facilitating the assessment of competition in the market and the implementation of anti-corruption mechanisms. However, this sector is notably susceptible to corrupt practices, where it is estimated that between 10% to 30% of budget funds can be lost due to non-transparent processes.
The EU is acutely aware of these vulnerabilities and requires candidate nations to establish transparent and competitive procurement systems. Notably, through the Ukraine Facility programme, the EU is committing substantial financial support to Ukraine, underscoring the necessity for assurance that these investments will be managed efficiently.
The transformation of public procurement processes in Ukraine is a pivotal benchmark for evaluating the nation’s readiness to adopt EU standards. Nonetheless, questions arise regarding the efficacy of EU systems themselves.
Despite the seemingly exemplary nature of EU procurement, a closer examination reveals significant challenges. The European Court of Auditors has noted a decline in competition, with tenders awarded to a single supplier increasing from 23.5% in 2011 to 41.8% in 2021. Additionally, the average number of participants in tenders has decreased, from 5.7 to 3.2 companies per procurement. Furthermore, cross-border procurement remains limited, as only 5% of contracts are awarded to companies from different EU countries.
The duration of procurement processes has also lengthened, with the average time extending from 62 days to 96 days, contrasting sharply with Ukraine’s expedited e-catalogue system, Prozorro Market, which completes procurement in about nine days.
Countries such as Estonia stand out as leaders in digital procurement, executing the entire process online, which not only saves time but also mitigates corruption risks associated with human intervention. Centralised procurement frameworks in nations like Sweden and Austria further consolidate efficiency, allowing for standardised rules and improved contract terms.
Ukraine’s current legislative framework partially aligns with EU directives, yet substantial further harmonisation is still required. In light of ongoing warfare, Ukraine has maintained a commitment to transparency and competitiveness in its procurement processes. A significant milestone is the anticipated adoption of Bill No. 11520, which seeks to introduce new procedures aligning with EU protocols.
This legislative change will include the implementation of dynamic procurement systems (DPS) designed to streamline regular procurement, allowing suppliers to qualify for tenders on an ongoing basis. Moreover, innovative partnerships that enable bespoke product and service development are also planned.
Bill No. 11520 aims to transition the current procurement evaluation model from one focused solely on the lowest price to a system that also considers factors such as product quality and lifecycle sustainability. Such changes echo practices long established within various European nations. The EU’s European Green Deal adds another layer of complexity, placing emphasis on environmental sustainability in procurement, alongside social responsibility metrics.
Challenges remain, particularly concerning localisation policies in Ukraine. Initiatives promoting domestic production conflict with EU principles advocating for equal access to public contracts across member states. The EU maintains that these restrictions must be alleviated to facilitate trade and competition, benefiting both Ukrainian and EU enterprises, especially amidst anticipated reconstruction efforts following the conflict.
Ukraine has already demonstrated certain advantages over some EU systems regarding transparency and digitalisation, maintaining high standards even during wartime. The implementation of the Prozorro Market has been pivotal, reducing procurement times significantly and generating notable savings — 3 billion UAH since early 2025 — through increased supplier competition and automated processes.
Looking ahead, the reform of Ukraine’s public procurement system is poised to be a substantial undertaking, aiming to align with EU norms while also learning from established EU practices. The effectiveness of these legislative and procedural changes will be a critical indicator of Ukraine’s maturity as it navigates its path toward EU integration.
Source: Noah Wire Services
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