A meeting took place at Ukraine’s Ministry of Defense between the Supervisory Board of the Defense Procurement Agency and representatives of diplomatic missions. The event was dedicated to the first 100 days of the renewed Supervisory Board, which resumed work in April 2025.
Participants included representatives from the G7, partner countries, NATO, and the European Union. The board presented its initial results and outlined future plans. The Supervisory Board plays a key role in transforming the agency into an effective procurement organization that meets the needs of the Armed Forces of Ukraine. Its main responsibilities include approving the development strategy, adopting key policies, overseeing management performance, and establishing transparency and accountability systems.
“The Supervisory Board resumed full operations under difficult circumstances. High expectations from both society and international partners are coupled with the need to build a system in a high-risk environment burdened by historical challenges. In 100 days, we laid the institutional foundation to launch full-fledged corporate governance within the agency,” said board chair Stanislav Haider.
Internal control system
The board initiated the creation of a full internal control system based on the “three lines” model, along with independent auditing:
- selected an independent auditor from the top six international firms – auditing has begun
- prepared for a functional audit in collaboration with NATO auditors
- established an internal audit unit, approved its charter, and publicly launched the selection process for its head
- appointed a deputy director for risk management and compliance
- prepared terms of reference for post-contract reviews based on risk criteria
- began developing key policies: anti-corruption, code of ethics, related-party transactions, and risk management.
“Our goal is to ensure feedback across all three lines by incorporating audit findings into governance decisions, internal policies, and efficiency improvements – essentially, through the implementation of quality criteria,” explained board member Lukasz Stolarski.
Management evaluation and operational effectiveness
The Supervisory Board reviewed the agency’s 2025 objectives and approved its 2026 goals, agreeing on over 40 key performance indicators (KPIs) covering financial, operational, and personnel-related areas, including:
- contract fulfillment
- accounts receivable
- staff development
- budget management
The contract with the agency’s director was also updated, and a performance evaluation system is being implemented.
“We’re establishing a systematic approach to evaluating management. We’ve already identified more than ten KPIs – and this is just the beginning. Targets are now set for both 2025 and 2026,” emphasized board member Kateryna Kuznetsova.
Strategic planning and development
One of the board’s top priorities is developing a long-term strategy. According to board member Lieutenant General Ivan Havryliuk, work has already begun on shaping priorities for a new AOZ Development Strategy through 2030. Preliminary focus areas include corporatization and legal reform, transforming AOZ into a single procurement agency, strengthening international engagement, HR development, and institutional capacity.
Additionally, the board has approved the agency’s 2025 investment and financial plan. A corporate governance policy is being prepared, and the internal control system will be updated to align with international standards.
“International partners expect not just reforms from Ukraine, but real progress in implementing Euro-Atlantic standards in the defense sector. The Supervisory Board’s task is to ensure the sustainability of these reforms and foster trust in the defense procurement system from both Ukrainian society and our international allies,” said Havryliuk.
Institutional capacity and transparency
- 17 meetings held, 107 decisions adopted
- Stanislav Haider elected as board chair
- Two committees established: appointments & remuneration, and audit
- Legal advisor and corporate secretary approved; a unified document base and decision-monitoring system created
- Policies on conflict of interest, public communication, and board development planning are being developed
- A public webpage for the board has been created on AOZ’s official site, including quarterly updates on composition, structure, documents, reports, and key statistics.
Previously, the Supervisory Board held similar meetings with the Public Anti-Corruption Council under the Ministry of Defense and with ministry leadership.
