Weapons Worth 17.6 Billion Hryvnia Never Reached the Front Lines: Ministry of Defense Reveals Extent of Delayed Contracts
13 August 16:20
As of July 1, 2026, the overdue receivables of the state-owned enterprise “Defense Procurement Agency” (DPA) amounted to 17.67 billion hryvnia. Almost the entire amount relates to contracts for the development, procurement, modernization, and repair of weapons and military equipment. The Ministry of Defense provided this information in response to a parliamentary inquiry from MP Anna Skorokhod, according to "Komersant Ukrainian".
The MP published the Ministry of Defense’s response on her Facebook page. The Ministry of Defense noted:
“According to the budget reports submitted for the second quarter of 2026, specifically based on the data reflected in the Reports on Budgetary Receivables (Forms No. 7d and No. 7m), as of July 1, 2026, under state contracts concluded by the Agency in its capacity as the state procurement authority, overdue receivables totaling 17,667.5 million UAH were recorded, including: under Budget Classification Code 2101020—in the amount of 61.4 million UAH; under Budget Classification Code 2101150—in the amount of 17,606.1 million UAH.” Budget Program Code 2101150 refers to the budget program “Development, Procurement, Modernization, and Repair of Weapons, Military Equipment, and Related Materials and Equipment.”
Thus, 17.606 billion UAH, or 99.6% of all overdue receivables of the Armed Forces of Ukraine, is attributable specifically to the procurement and development of weapons, military equipment, supplies, and gear.
Another 61.4 million UAH is attributed to KPKVK 2101020 (Support for the Activities of the Armed Forces of Ukraine, Training of Personnel and Troops, Medical Care for Personnel, Veterans of Military Service, and Their Families, and War Veterans).
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At the beginning of the year, the amount was 45.26 billion UAH
Skorochod noted that as of January 1, 2026, the amount of overdue receivables held by the Ministry of Defense was significantly higher— 45.26 billion UAH.
“Let me remind you that a major scandal erupted at the beginning of the year: according to official data from the Ministry of Defense, as of January 1, 2026, the Agency’s overdue receivables had reached a staggering 45.26 billion hryvnias! That’s nearly 10% of the agency’s total annual procurement budget,” the lawmaker wrote.
According to her, it was precisely to verify how the situation had changed during the first half of the year that she submitted a request to the Ministry of Defense regarding the status of the receivables as of July 1.
Over the course of six months, officially recorded overdue receivables decreased by approximately 27.6 billion hryvnias—from 45.26 billion to 17.67 billion hryvnias. At the same time, more than 17.6 billion hryvnias in overdue receivables remain under the weapons procurement and modernization program.
Skorokhod cited these figures as evidence that the problem with fulfilling defense contracts persists.
“What does this mean in plain language? The state transferred billions of hryvnias of our tax money to suppliers as advance payments. All contractually stipulated delivery deadlines have long since passed. But the weapons, equipment, and ammunition have still NOT REACHED the front lines,” the MP stated.
In her post, Skorokhod speculated on the reasons behind this debt and the operations of the State Defense Procurement Agency (AOZ).
“I think it goes without saying that these staggering procurement figures ended up with so-called ‘friendly’ suppliers: both Ukrainian shell companies and foreign intermediaries. And who at the AOZ has been held accountable for this? Zhumadilov bears no responsibility for this,” she added.
In conclusion, the lawmaker stated that she would demand an audit of the contracts that gave rise to the debt.
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