On 23 June 2026, the President of Ukraine signed the new Law of Ukraine “On Public Procurement” (Registration No. 11520), which comprehensively updates the public procurement system in line with European standards. The Law is a key legislative act for Ukraine’s accession to the European Union, as it implements Directive 2014/24/EU and falls within the first, fundamental cluster of the EU accession negotiation process.
The Law is intended to become an effective tool for saving public funds, strengthening the confidence of international partners, and improving the efficiency of public spending. The document will also reinforce Ukraine’s position in negotiations on accession to the European Union.
The Law is of particular importance for Ukraine’s reconstruction following the consequences of the Russian Federation’s full-scale armed aggression, as a significant share of state and international funding will be allocated through public procurement mechanisms. It is therefore essential that these funds are used transparently, competitively, and efficiently.
What Will Ukrainian Businesses Gain?
The Law significantly expands opportunities for Ukrainian companies, especially SMEs, to participate in public procurement while eliminating outdated bureaucracy.
Revision of the Procurement Lot Division Mechanism
The Law clearly regulates the division of large procurement contracts into lots. This will prevent large market players from securing all contracts and will open opportunities for smaller regional companies to participate in major tenders.
Opportunity to Offer Alternative Solutions (Alternative Tender Proposals)
For the first time, businesses will be able to submit alternative proposals, provided this option is permitted by the contracting authority. If a company has a technologically superior or more advantageous solution, it will be able to propose it during the tender process.
Flexible Instruments for Long-Term Cooperation
Updated rules governing framework agreements and dynamic purchasing systems will enable companies to plan their operations in advance by supplying standardized goods without repeatedly preparing full sets of documentation from scratch.
Regulation of Subcontracting
Relations with subcontractors and co-contractors are now clearly regulated by law. This makes participation in large-scale projects safer and provides legal protection for every participant in the supply chain.
Alignment with EU Standards
The Law is aimed at implementing Directive 2014/24/EU. For international partners, its adoption demonstrates that Ukraine’s reconstruction is being carried out in accordance with the highest international standards of transparency. This will facilitate the large-scale attraction of foreign investment and financing for reconstruction projects in which Ukrainian businesses will play a key role.
Attraction of Large-Scale Financial Support
The adoption of the Law forms part of a broader package of institutional reforms that Ukraine is implementing in cooperation with international partners. In particular, successful progress in these reforms provides access to financing under the World Bank’s Development Policy Operation (DPO) “Jobs and Private Sector Growth” Program in the amount of USD 3.4 billion.
On 23 June 2026, the World Bank’s Board of Directors approved the first Development Policy Operation (DPO) “Jobs in Ukraine and Private Sector Growth” in the amount of USD 3.39 billion, aimed at creating conditions for attracting private financing and investment, addressing labour shortages, and deepening cross-border market integration.
The program supports Ukraine’s private sector-led recovery by advancing reforms in three areas. These include creating conditions for private sector financing and investment, particularly through reforms of the regulatory framework governing public-private partnerships and financial intermediation for small and medium-sized enterprises, as well as efforts to advance the privatization agenda.
The second area focuses on attracting a skilled workforce through reforms aimed at modernizing housing policy, supporting veteran entrepreneurship, encouraging women’s participation in the labour market, and reducing skills mismatches.
The third area focuses on promoting cross-border market integration by strengthening transparency in agricultural support payments, integrating electricity market institutions with the European Union, and aligning environmental monitoring requirements.