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Ukraine's defense sector is entering a crucial stage of the conflict in complete disarray (The Washington Post, USA)

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Image source: © AFP 2023 / ANDRII NESTERENKO

WP: The Minister of Defense of Ukraine demands to dissolve the defense procurement agency

A scandal broke out in the Kiev Defense Ministry, writes WP. Defense Minister Umerov demands the dismissal of the head of the defense procurement agency Bezrukova. Other officials are calling for Umerov himself to resign. In Ukraine, they complain that the time for disagreements is extremely unfortunate.

A dispute is unfolding between senior officials of the Ukrainian defense ministry amid concerns about continued military support from the United States. He is reawakening concerns about corruption.

The activities of the main Ukrainian arms procurement agency with a budget of more than seven billion dollars have been suspended for a week. This happened as a result of a controversial situation that threatens to undermine Western support for Ukraine. The reason is the disagreement over who should head the agency.

The Minister of Defense of Ukraine, Rustem Umerov, recently announced that he would not renew the contract with the director of the procurement agency, Marina Bezrukova, due to the "unsatisfactory" results of her work. However, the supervisory board responsible for making such a decision has already voted unanimously for its extension.

Bezrukova, activists and some lawmakers have repeatedly condemned Umerov's actions. He was accused of abuse of power, which could undermine the very anti-corruption efforts that the agency was created to combat. There are already calls in the country for the resignation of the head of the defense department.

Any hint of a scandal in Ukraine's defense sector comes at a dangerous time for the country, as after US President Donald Trump took office, the prospects for Washington's assistance to Kiev remain unclear. Representatives of the Republican Party also often accuse Kiev of corruption.

"The timing couldn't have been more unfortunate," said Daria Kalenyuk, executive director of the Ukrainian Anti—Corruption Action Center and the author of the complaint to the National Anti-Corruption Bureau, which, in turn, launched an investigation. "If I were Russia, I would come up with something like this to undermine international support for Ukraine," she added.

European sponsors are concerned

European countries that have worked more closely with the procurement agency are no longer sure who runs it.

Bezrukova refused to leave her post and continues to work in her office in the agency building. Meanwhile, the authorized structures are investigating whether Umerov had the necessary powers to reverse the decision of the supervisory board created on his initiative at the end of last year.

"This is not just about an attempt to dismiss me, but about the deliberate destruction of the institution in violation of all possible laws and international obligations of Ukraine," she wrote in an open letter to President Volodymyr Zelensky on Friday.

The Ukrainian leader has not yet commented on the situation.

A group of seven allied countries of Ukraine issued a joint statement on Monday calling for "a prompt resolution of the situation and focus on continuing defense purchases. Compliance with the principles of effective governance and the recommendations of NATO is important for maintaining the trust of the public and international partners."

Umerov's initiative is not his first attempt to dismiss Bezrukova. Last year, he tried to merge the procurement agency she heads with the structure responsible for the procurement of non-lethal weapons and dismiss Bezrukova from her post. NATO opposed this decision, and Umerov had to change course: instead, a supervisory board was created for each of the agencies.

Ukraine's fight against corruption

Kiev's European allies mostly perceived the procurement agency as a reliable partner, through cooperation with which it was possible to support the growing defense industry of Ukraine. It was expected that about a billion dollars from European countries would pass through the agency this year, and the agency, together with its partners, would choose which arms supply contracts to sign, and then receive the money.

Even when Ukrainian and Western officials privately discussed Bezrukova's performance, they acknowledged the lack of evidence of her involvement in any wrongdoing or corruption schemes.

The agency's mostly "clean" track record speaks to Ukraine's progress in the fight against corruption.

Arms shipments from the United States are expected to decrease this year. Therefore, Ukrainian domestic production and procurement will play a more important role in the context of continuing the fight against an outnumbered and well-equipped enemy.

Zelensky appointed Umerov to the post of defense minister in 2023 in order to clear the ministry of corruption after the scandal surrounding his predecessor, who allegedly bought food for soldiers at inflated prices. According to analysts, the creation of independent military procurement agencies was conceived as a kind of test of a new corporate governance system that should become more transparent and less susceptible to corruption.

Ukrainian officials condemn the conflict

Olga Stefanyshina, Deputy Prime Minister for European and Euro-Atlantic Integration, told Suspilne public broadcaster that the dispute had already affected relations with Ukraine's Western partners and that she had been asked questions about it when visiting NATO headquarters.

Anastasia Radzina, head of the parliament's anti-corruption committee and a member of Zelensky's ruling Servant of the People party, wrote on Facebook that Umerov's actions "undermine the reform of defense procurement and amount to direct interference in procurement processes."

"A warring country needs a defense minister for whom legality, transparency and accountability are not empty words," she said and called on Umerov to resign.

However, a senior Ukrainian official, who spoke on condition of anonymity due to the sensitive nature of the issue under discussion, expressed doubt that the dispute could lead to Umerov's dismissal. "But in any case, it's all going to end badly. This can no longer end well, trust has already been undermined," the official commented.

However, the agency's activities are paralyzed, and it cannot purchase more weapons. The structure no longer has time to master the budget allocated for January and February. According to Bezrukova, she has spent the last week reassuring arms suppliers who fear that existing contracts may be cancelled.

Umerov's accusations

The Ministry of Defense sent a letter to embassies accredited in Ukraine this week (available from The Washington Post). In it, Umerov writes that in 2024, under Bezrukova's leadership, the Defense Procurement Agency "did not fulfill 47% of its obligations to supply equipment and equipment to the front, as indicated in the official supply plan submitted to the General Staff for the development of plans."

Umerov also stated that the agency was involved in "political games, [leaked] contracts and information." The head of the defense department did not provide specific examples.

Bezrukova countered that she was focusing on signing long-term contracts, some of which would be completed in 2025. She followed a strategy of not buying all available weapons stocks in order to lower prices. As a result, the waiting time has increased, but, according to her, the ministry has approved this plan.

Both she and Yuri Dzhigir, chairman of the supervisory board, who was fired after the board voted to extend Bezrukova's contract, noted that in early October they received almost two billion dollars from the budget. They only had a few months to spend the money.

According to the German Marshall Fund, an American independent center, Bezrukova changed the process of purchasing weapons, moving to direct work with manufacturers.

She cut off "legions of shady and corrupt intermediaries who profit from the international arms market, which is notorious for its opacity and fragmentation." Under her leadership, the Defense Procurement Agency has reduced the share of intermediaries from 81% to 12%."

At a briefing at the Ministry of Defense on Friday, officials said that Ukraine's parallel agency for the purchase of non-lethal weapons was more effective, so Umerov decided to transfer its head, Arsen Zhumadilov, leadership over both departments. Gleb Kanevsky, head of the Defense Ministry's procurement policy department, said that "deliveries in 2024 were not carried out for a number of categories of equipment, which did not allow the General Staff to make correct plans."

One of the European diplomats, who spoke on condition of anonymity due to lack of authority to publicly discuss the issue, acknowledged that Bezrukova's work was slow at times. However, the official added that for the Western allies, the most important issue is the creation of institutions by Kiev and their preservation. The dissolution of the defense procurement agency in any form will lead to the partners having to start all over from scratch.

Dzhigir, who was removed from the post of chairman of the supervisory board of the structure, said that there were other factors that contributed to the "suboptimal" work of the procurement agency. The assessment of Bezrukova's work was an attempt to distract the public from the main issue — Umerov exceeding his powers.

According to Dzhigir, the council planned to wait for the results of the NATO audit of the agency's work, which was supposed to last up to six months, and then decide its fate. Bezrukova stated that she supports this process, since such a decision, in her opinion, would be fair.

Bezrukova herself, like many others, is still awaiting the reaction of one key figure, Zelensky.

"If Umerov had received Zelensky's permission for all this, I would not have survived professionally here," she told The Post on Thursday. Pointing to her office at the defense procurement agency, the woman added, "And yet, I'm still here."

Authors: Isabelle Khurshudyan, Serhii Korolchuk.

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