May 2026
On 1 May 2026, the Cabinet of Ministers of Ukraine adopted Resolution No. 561, which significantly amended the procedure for coordinating international military assistance during martial law.
The amendments affect both the concept of international military assistance, by extending it to financial resources provided by partner states, and the institutional framework for cooperation with donors through the introduction of a centralised mechanism for attracting and utilising donor funding.
- For Ukraine’s state authorities, the changes establish a clearer process for coordinating needs and using financial resources, with the Ministry of Defence of Ukraine acting as the central coordinator and the Defence Procurement Agency playing the leading role in procurements funded through such assistance.
- For partner states, the new procedure is expected to provide greater transparency and predictability regarding the allocation and use of donated funds.
The former framework
Military assistance covered weapons, military and special equipment, logistical support assets, works, services and other resources not prohibited by law. At the same time, financial resources were expressly excluded from this concept.
Key changes
Financial resources in both the national (hryvnia) and in a foreign currency are expressly included within the scope of international military assistance. Such resources may be utilised for the procurement of defence-related goods, works and services, as well as other goods, works and services necessary to ensure security and defence sector needs.
A “single window” mechanism has been introduced for processing needs that may be financed using funds provided by international partners. The Ministry of Defence of Ukraine (“MoD”) acts as the central coordinator, consolidating the relevant security and defence body requirements, along with drafting and submitting unified proposals regarding the allocation of such funding to the respective partner states.
The role of the Defence Procurement Agency (“DPA”) is expanded. As a general rule, the DPA procures goods, works and services using financial resources provided by partner states. At the same time, intelligence agencies procure goods independently.
The key changes are summarised in the table below:
|
Aspect |
Then | Now |
|
Scope of assistance |
Goods, works and services | Goods, works, services and financial resources |
| Role of the MoD | Coordinating the provision of international military assistance together with other state authorities; in practice, communication with donors regarding needs mainly concerned entities falling within the MoD’s purview |
Acts as the central coordinator for financial resources provided by partner states and consolidates the needs of all relevant security and defence bodies in order to formulate coordinated proposals for donors |
| Role of the DPA | No role, as financial resources were excluded from the concept of international military assistance |
As a general rule, procurements using funds provided by partner states are conducted through the DPA |
Process for the allocation and use of financial resources under the new procedure
1) Coordination
- Upon receiving a proposal from a partner state regarding the provision of financial resources, the MoD informs the General Staff of the Armed Forces of Ukraine (“General Staff”) and the relevant state authorities about the terms and scope of such funding.
- State authorities (except intelligence agencies) that have received a proposal from a partner state are required to notify the MoD thereof.
- The General Staff and state authorities submit to the MoD proposals containing lists and volumes of the respective goods, works and services that may be procured using the received resources (“Lists”).
2) Approval of proposals and procurement lists
- The MoD consolidates the proposals and submits them to the partner state for approval.
- Upon receiving such approval, the MoD approves the final Lists for each relevant security and defence body.
3) Use of funds
- Procurements are carried out by the DPA unless the funding conditions and/or applicable legislation provide otherwise.
- Procured items are transferred directly to the relevant security and defence bodies in accordance with the approved Lists.
- Intelligence agencies carry out procurements independently.
Conclusion
The new procedure integrates donor funding into Ukraine’s international military assistance framework. For Ukraine, this creates a coordinated processing framework that takes into account the needs of the relevant security and defence bodies and allows for the efficient use of funding for the procurement of defence-related goods. For partner states, this should provide greater transparency and predictability regarding the use of supplied funds.
Contacts
For more information, please contact:
- Daniel Bilak, Managing Partner, Kyiv, Defence & Security, daniel.bilak@kinstellar.com
- Maiia Savelieva, Senior Associate, Kyiv, Defence & Security, maiia.savelieva@kinstellar.com
- Alina Borovets, Associate, Kyiv, Defence & Security, alina.borovets@kinstellar.com
