Defense Procurement Reform: What Has Changed for the Army Since January 1, 2026

Defense Procurement Reform: What Has Changed for the Army Since January 1, 2026

According to ХВИЛЯ: As of January 1, 2026, a defense management reform has been implemented in Ukraine, whereby all procurements for the army are carried out by the Defense Procurement Agency (DPA). This reform aims to streamline the procurement processes and enhance the efficiency of budget spending on defense.

The defense management reform in Ukraine started in 2023. From the moment of its implementation, the DPA is responsible for purchasing everything necessary for the army, including:

• weapons
• clothing
• ammunition
• fuel
• food

Previously, Ukraine had two separate agencies: the 'State Rear Operations Operator' (SROO) and the 'Defense Procurement Agency' (DPA). Now, the DPA has become the sole point of responsibility for all procurements.

Key Changes in the Procurement System

One of the key changes is the implementation of the DOT-Chain system, which has digitized 70% of the paper document flow. This significantly simplifies procedures and reduces the time for document processing. Minister Denys Shmyhal noted that in 2026, it is planned to continue scaling the DOT-Chain, providing the military with even more tools for rapid feedback on the quality of goods.

"The control by the defense ministry in the new system is extremely important"

Denys Shmyhal

Despite the changes in the procurement system, the Ministry of Defense retains its functions of policy formation and oversight. In addition, the supervisory board of the Agency continues its work, indicating a commitment to ensure a high level of oversight over the procurement processes.

Thus, the defense procurement reform in Ukraine from January 1, 2026, contributes to greater transparency and efficiency in managing army resources, which is an important step in strengthening the country's defense capabilities. Changes in the procurement system may have a significant impact not only on internal processes but also on external relations with partners, as the effective use of resources is a critically important aspect in the face of modern security challenges. The reform may also serve as an example for other states seeking to improve their defense procurements and resource management.