Zelenskyy Signs Procurement Law, Unlocking $3.4 Billion World Bank Support for Ukraine
President Zelenskyy signed a procurement law on June 23, aligning a quarter of Ukraine’s economy with EU rules. This reform unlocks $3.4 billion from the World Bank and is a key step towards EU accession. The law, two years in development, introduces new tender formats and expands localization requirements.
President Volodymyr Zelenskyy signed a new procurement law on June 23, binding approximately a quarter of Ukraine’s wartime economy to European Union rules. This reform, two years in the making, unlocks $3.4 billion in World Bank budget support and addresses an early requirement for Ukraine’s EU accession, part of the first cluster of accession talks opened on June 15.
The law implements EU Directive 2014/24/EU, expanding tender formats and introducing European mechanisms for complex purchases. It mandates splitting large contracts into lots to prevent single-supplier dominance and makes an electronic marketplace compulsory for mid-range purchases. These new rules take effect nine months after publication, allowing time for secondary legislation and system development.
The reform also expands Ukraine’s “Made in Ukraine” localization requirements to include civilian goods for defense forces, such as body armor and demining equipment. The State Audit Service will verify product origin at every stage. This expansion comes despite existing issues within the procurement system, exemplified by a recent case where a supplier delivered substandard drone batteries to the National Guard.
The bill, initially registered in August 2024, faced delays due to concerns from anti-corruption monitors regarding non-compliance with EU directives and potential corruption risks. After extensive rework involving Transparency International Ukraine and other bodies, over 40 changes were made, and several problematic provisions were removed before its final passage on May 27 with 245 votes in favor.