Less corruption, more competition: how Ukraine is building a digital arms procurement system
Ukrainska Pravda
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Ukraine's Ministry of Defence has launched a digital platform designed to make weapons procurement as simple as shopping on Amazon. Frontline units can literally log on, compare prices, select the drones they need and receive deliveries within days.
The push for such a radical procurement reform was driven by the pace of technological change, delays in getting drones to the front and abuse of office, with some officials able to buy low-quality equipment at inflated prices.
Ukraine began building a competitive drone market back in 2023. Markets drive innovation, but they also bring chaos and create opportunities for corruption and bad value for money.
That left the Defence Procurement Agency (DPA) with a tightrope to walk:how could theyintroduce quality controls and keep prices within reason without stifling the free market's "magic"?
The DPA opted for digitalisation, creating what is effectively a military marketplace. The idea has drawn interest well beyond Ukraine: the US andFrancehave begun exploring similar approaches, as few other models can keep pace with rapid technological change.
To understand how the system works and where it falls short, Ukrainska Pravda spoke to manufacturers, service personnel and Ministry of Defence officials, as well as DPA director Arsen Zhumadilov.
What is DOT-Chain Defence for?
Standard drone procurement is essentially handled manually. The General Staff defines what is "needed" and submits a request to the Ministry of Defence, often specifying models from particular companies. Once purchased, drones are routed through the Logistics Forces Command's warehouses, a process that can significantly delay their arrival at the front.
The system functions, but it carries obvious risks. The "needed" list may prioritise drones from "friendly" suppliers rather than the most effective models. It also limits genuine competition and leaves combat brigades unable to choose what works in the field and at the right time, or to communicate directly with manufacturers.
The DPA set out to change this. Its in-house IT teamhasbuilt a digital platform that allows brigade representatives to order drones directly and receive them within days.
This market-based model is closely associated with the agency's current head, Arsen Zhumadilov. He previously rolled out a similar system for food supplies, known as DOT-Chain. After taking over the DPA, he moved to scaleit upto weapons, branding it DOT-Chain Defence.
Arsen Zhumadilov.
Photo: Babel
The idea initially drew predictable – and reasonable – criticism: buying weapons is not the same as buying tinned meat. The arms market is far more complex, more closed and governed by its own rules. There was also scepticism among senior military officials. Defence industry sources told Ukrainska Pravda that some officers had to be persuaded in person that it could work.
DPA officials also knew that a sudden switch to a new platform risked disrupting supplies if anything went wrong. DOT-Chain Defence was therefore rolled out gradually, with the mechanisms tested as it expanded.
At first, the marketplace included only products from what Zhumadilov calls "mature" segments – areas where many companiesalreadyproduce similar goods and compete directly.
The platform already covers FPV drones, bomber drones, reconnaissance drones, unmanned ground systems, electronic warfare equipment and interceptor drones. Ammunition for UAVs is expected to be added next.
Ammunition for drones at the NAUDI exhibition.
Photo: NAUDI
More complex weapons – artillery shells, long-range strike systems, missiles and artillery – have deliberately been left out. For now, they will continue to be procured under the old procedure, which requires tighter oversight, scale and substantial advance funding.
That share is now growing. Weapons worth UAH 10.5 billion (US$238 million) were supplied through the platform overa six-month periodlast year. In the first three and a half months of 2026, the figure has already reached UAH 22.9 billion (US$519 million). The Ministry of Defence says it wants to move up totransferring70% of drone procurement onto the platform.
Some purchasing will still take place under the old procedure. But the DPA says "conventional" procurement will now be monitored using DOT-Chain Defence data, allowing auditors to spot large orders of drone models that troops do not want.
How does DOT-Chain Defence work?
In practice, DOT-Chain Defence works much like an online marketplace. The platform hasallthe familiar features: product listings, filters, reviews and a channel for direct communication with suppliers.
Demonstration of the DOT-Chain Defence interface
Here is how it works for a Ukrainian drone manufacturer. First, a company submits documents to the DPA confirming that it is a legitimate business, has fulfilled previous contracts and has no ties to Russia. If the paperwork checks out, the manufacturer signs a framework agreement with the agency.
The agreement sets out the model name, specifications and price, along with a potential supply volume – for example 10,000 drones over six months.
In effect, the framework agreement says the DPA may buy up to that number if military units choose the product. The company is paid only after military units place orders via the platform. After a batch is delivered to the front, the agency signs a follow-up agreement and releases payment.
If demand is high and the initial volume is exhausted before the framework agreement expires, the DPA renews the contract with an increased quota.
The agency says onboarding takes less than a week, though it can be accelerated at the request of a military unit.
Drone from the company Ukrainska Bronetecknika (Ukrainian Armoured Vehicles) featured on the marketplace.
Photo: Oboronka, Anna Shtopenko
Once onboard, the manufacturer starts trading. Through a personal account it can list what is in stock and what still needs to be produced, set delivery volumes and timelines, review feedback and communicate with users, including responding to complaints.
The military, however, view DOT-Chain Defence from a different angle – that of the end user. First, the General Staff and the Ministry of Defence decide which units will be granted access to the platform and allocate a spending limit for procurement.
A representative of each military unit then assigns responsibility across three separate roles: one person places orders, another receives the goods and a third signs the acceptance certificate. This division of responsibilities limits each individual's access to sensitive supply information, creating an additional layer of security.
The supply process itself is designed to minimise risk. The system does not display the exact delivery address, only the oblast or another administrative area. The logistics are handled by a company that maintains direct contact with the military unit and agrees the precise delivery address and schedule separately.
If a product fails to meet the required standards, it is returned to the manufacturer for replacement. Repeated incidents of this kind negatively affect a supplier's reputation on the platform, where verified reviews can be submitted.
The OCTOPUS interceptor drone, manufactured by TAF, listed on the marketplace.
Photo: Oboronka, Anna Shtopenko
Security has been given particular attention by the Agency. This explains both the role-based access system and the absence of exact delivery addresses within the platform. A similar approach is used in other military digital solutions, including the Delta situational awareness system. DOT-Chain Defence also incorporates additional security layers, including a profile developed in line with international standards such as ISO 27001 and the NIST Cybersecurity Framework.
At present, 218 units of Ukraine's defence forces are connected to the marketplace. There are also plans to integrate units from the Drone Line project, which aims to create a kill zone along the line of contact.
Connected units can choose which notional "account" to use when paying for goods. One account contains funds allocated by the Ministry of Defence, while the other holds e-Points earned in combat. If necessary, the Ministry can increase the spending limit for a specific unit, for example if intensified fighting is expected in its sector.
Currently, the platform offers 536 different products from 140 manufacturers. Items can be sorted by category and filtered by price, popularity ornewnessand users can also read reviews from other military personnel.
If an item is already in stock, it can be delivered within 10 days. If not, it can be pre-ordered, in which case the manufacturer must dispatch it within 60 days. Delays in delivery result in financial penalties for the company.
What are the drawbacks?
Ukrainska Pravdasurveyed around two dozen users of the system, both manufacturers and military personnel. Overall, feedback has been largely positive.
DOT-Chain Defence has shifted a significant portion of procurement into a digital format. Lengthy approvals and paper documentation have been replaced by electronic documents and digital signatures, significantly reducing the time required to conclude contracts. In addition, manufacturers maintain direct contact with military users, allowing for communication and immediate feedback.
"Our interaction with manufacturers has been reduced to a minimum. We select the equipment, place an order and it arrives within a few days," one serviceman noted.
The system also enables forward planning of procurement, testing of different products and more informed decision-making based on practical experience when scaling up purchases.
A drone by Buntar Aerospace, listed on the marketplace.
Photo: Oboronka, Anna Shtopenko
However, the platform is not without its shortcomings.
The first issueis that the system currently operates on a post-payment basis – goods are delivered first and payment follows. The lack of advance payments forces manufacturers to restock using their own working capital. This is manageable for small batches, but for larger volumes it ties up significant resources that could otherwise be invested in development or production.
This issue is expected to be resolved soon. Zhumadilov toldUkrainska Pravdathat an advance payment mechanism is being prepared, linked to product demand and delivery speed.
The second issueconcerns production timelines. One manufacturer of high-end, technologically advanced drones noted that the system allows up to 60 days between order placement and delivery, while their production cycle is significantly longer. As a result, the company must again rely on its own working capital to produce expensive drones in advance, otherwise it risks failing to meet delivery deadlines.
Thirdly,Ukrainska Pravdawas able to review the platform from a client account and found that military users are not yet very active in leaving reviews. This is because only procurement officers – not the end users – are permitted to submit feedback.
To address this, the Agency plans to grant access to brigade workshops, allowing those who directly deal with equipment – and experience the consequences of poor-quality drones – to provide evaluations.
The fourth issueis an emerging imbalance in favour of well-known and trusted manufacturers. Military units tend to favour these suppliers and are less inclined to try alternative products, even when they may be equally competitive. This undermines supply diversification, which is essential for managing risk.
The Agency is experimenting with ways to encourage users to try products from other companies. At present, this is being addressed through the platform's interface, where moderators highlight new products and suggest alternatives.
For example, on 14 February, the Defence Procurement Agency launched a campaign called "Cupidrones" – effectively a "Tinder-style" matching system designed to pair military needs with suitable drones and promote lesser-known manufacturers.
The effectiveness of these measures will become clearer over time, as procurement volumes through the platform increase.
The fifth issueis the demand – from both manufacturers and buyers – for drone customisation and the separate procurement of components for use in workshops. At present, the platform does not offer a "drone builder" function.
Sixth, manufacturers are calling for greater flexibility – for example, the ability to adjust prices more quickly or add new models to the system. Currently, this process is time-consuming, as it requires additional agreements, documentation and other bureaucratic procedures.
There is also an issue with extending framework agreements. "If production takes two to three months and only one month remains before the contract expires, we are forced to stop accepting orders. Since the Defence Procurement Agency usually does not extend contracts until they have actually expired, this creates an unavoidable gap in supply," a company representative explained.
A drone by Vyriy, listed on the marketplace.
Photo: Oboronka, Anna Shtopenko
Seventh, as the platform operates as an open market system, the Ministry of Defence cannot imposedomestic productionrequirements on components. Companies compete solely on price, quality and delivery speed. Since DOT-Chain Defence is designed to simplify procedures rather than impose conditions, the state will need to find alternative tools to encourage manufacturers to move away from Chinese components and switch to domestic ones.
Despite these challenges, the overall direction – reducing bureaucracy, cautiously introducing new procurement practices and bringing manufacturers closer to the market and the military closer to manufacturers – can be considered sound.
However, one key question remains: whether the system will be able to function effectively at genuinely large supply volumes. Only time will tell.
