Mikhailo Fedorov, the former Ukrainian Defence Minister, has publicly addressed significant challenges he faced in reforming the country’s defence procurement system, especially regarding drone acquisitions. His comments have sparked discussions about the integrity of procurement practices and the potential for inflated costs.
Challenges in Procurement Reform
Fedorov’s remarks come shortly after his dismissal from office, where he detailed the resistance he encountered while attempting to implement changes in Ukraine’s defence procurement processes. He pointed to three specific drone suppliers—”Kolyada Ka”, “Euro Tunnels”, and “Ares”—that have come under scrutiny. Fedorov’s experience reflects broader systemic issues within Ukraine’s procurement landscape, particularly in the defence sector, where transparency and accountability are critical for ensuring value for public funds.
Allegations of Price Inflation
During the discussion, Fedorov mentioned a supplier that allegedly marked up its products by 200-300%. He described the company as being owned by a well-known individual living outside Ukraine, raising questions about the influence of external actors on domestic procurement. These allegations highlight the potential for corruption and the need for stringent oversight in the procurement process, particularly in a sector as sensitive as national defence.
Investigations into Euro Tunnels
The spotlight has also fallen on “Euro Tunnels”, a drone and component manufacturer established in August 2022. The company reported revenues of €10.8 million in 2024, with a profit of €1.88 million. However, its rapid growth has prompted scrutiny from the Ukrainian Economic Security Bureau, which launched an investigation on March 3, 2025, over alleged large-scale embezzlement of state funds related to drone component purchases. The investigation focuses on components supplied for the “Magura UA” drone, intended for logistics and cargo delivery.
| Label | Value |
|---|---|
| Former Minister | Mikhailo Fedorov |
| Alleged Price Markup | 200-300% |
| Year Established | 2022 |
| 2024 Revenue | €10.8 million |
| 2024 Profit | €1.88 million |
| Investigation Start Date | March 3, 2025 |
| Investigation Focus | Drone components for “Magura UA” |
Fedorov’s comments underscore the urgent need for reform in Ukraine’s defence procurement system to prevent corruption and ensure accountability.
WHY IT MATTERS
The procurement practices in Ukraine’s defence sector are crucial for ensuring effective use of public funds and maintaining national security.
Reported from jauns.lv, 2026-08-14. The Tender Wire is published by Otnox.
