Ukraine`s public procurement market presents significant opportunities for international businesses, especially in light of the country`s current need for recovery and its integration with the European Union. The procurement system is designated to ensure transparency, competition and equal access for both domestic and foreign bidders.

Public tenders in Ukraine can be broadly divided into 2 categories:

This article provides an overview of the legal framework and practical aspects of both procurement regimes in Ukraine, addressing state-powered tenders and those governed by IFI rules.

State-financed public procurements

State-financed procurement in Ukraine is regulated by the Law of Ukraine «On Public Procurement», which governs the acquisition of goods, works, and services funded from state and local budgets, as well as by the state-owned enterprises. This law, harmonized with EU public procurement standards under the EU – Ukraine Association Agreement, enshrines the principles of fair competition, transparency, non-discrimination, and the efficient use of public resources.

ProZorro electronic procurement system

As defined by the law, all state-financed procurements are carried out through the electronic procurement system ProZorro, which operates on the principle «so that everyone sees everything» and guarantees open access to all tender-related information at every stage of the process. The system is built around a central state-owned database, ProZorro, which collects and publishes all procurement data. Access to this database for the bidders is provided exclusively through 12 accredited electronic marketplaces, where bidders can register, search for tenders, submit proposals, and communicate with contracting authorities in a fully transparent and competitive environment.

Types of procurement procedures

The law provides for several procurement procedures, applied depending on the value of the contract, complexity and specific circumstances. One can distinguish the following types:

Note: during the period of martial law, the scope of situations in which the negotiated procedure may be applied has been significantly expanded under the Special rules for public procurement during wartime.

All this procurement procedures are fully accessible to foreign businesses, allowing them to compete on equal terms with local companies in Ukraine`s public procurement market.

Typical requirements for participation

Ukrainian legislation defines that foreign businesses can fully participate in Ukrainian public procurement; however, they must meet qualification and compliance requirements, which may differ depending on the contracting authority and the specific tender. Typical requirements include:

In addition to these typical requirements, contracting authorities may set specific qualification criteria (one or few). They may include the need to prove:

Also, Ukrainian public procurement law allows for the involvement of subcontractors (also referred to as co-executors), but only where the subject of the contract is the procurement of works or services, not goods. If a bidder plans to engage one or more subcontractors whose share of work equals or exceeds 20% of the contract value, the tender proposal must indicate their full name and location.

Note: In case a bidder believes that the tender discrimination contains discriminatory requirements, it may file a complaint with the Antimonopoly Committee of Ukraine, which acts as the designated appeal body in public procurement and has the authority to order the contracting authority to amend the documentation.

Internationally financed public procurements

Procurements financed by international financial institutions (IFIs), such as the International Bank for Reconstruction and Development (IBRD), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and others are carried out in accordance with the procurement rules of the respective institution, while also taking into account the principles of public procurement set forth in the Law of Ukraine «On public procurements».

The information about IFI-funded procurement opportunities is publicly available on the procurement portals of the respective institutions, such as the EBRD`s Client e-Procurement Portal (ECEPP) at https://ecepp.ebrd.com/. Contract terms are usually based on internationally accepted standards (e.g., FIDIC for construction projects), and disputes are resolved under international mechanisms.

Types of procurement procedures

International financial institutions apply procurement procedures that are harmonized with international standards and tailored to the specific needs of the financed project. While terminology may vary across institutions, the following types are commonly used:

The choice of procedure is determined by the project`s complexity, financing terms, and procurement strategy approved by the IFI.

Typical requirements for participation

The qualification requirements for bidders in IFI procurements are often more rigorous and internationally aligned. Common criteria include:

IFI procurements also permit the participation of joint ventures or consortium. These partnerships allow multiple companies to combine technical expertise, financial capacity, and knowledge to successfully perform under complex contracts.

How to participate in public procurement in Ukraine?

As was mentioned before, participation in Ukrainian public procurements is open to both domestic and foreign businesses, provided they follow the procedural steps set out by the relevant regulations. The process varies slightly depending on whether the procurement is state-financed or funded by international financial institutions, but the core requirements remain similar.

State-financed procurements

Announcements for all state-financed tenders are published on the Prozorro system. In order to participate, a bidder has to:

Internationally financed public procurements

For procurements financed by IFIs, announcements are published on the official procurement portals of the respective institutions. Participation generally involves:

By following these steps, foreign companies can successfully access and compete in both ProZorro-based and IFI-funded procurement markets in Ukraine.

At Koziakov & Partners, we have extensive experience guiding international businesses through procurement processes in Ukraine. Our team provides full support at every stage – from assessing tender opportunities and preparing compliant bids to representing clients before contracting authorities and ensuring smooth implementation of awarded contracts. With our extensive expertise, foreign companies can confidently navigate the procurement landscape and maximize their chances of success in Ukraine.