WHAT WILL CHANGE FOR BUSINESSES WORKING WITH THE PUBLIC SECTOR

Will it become easier for businesses to secure public contracts? Ukraine’s new Law “On Public Procurement” No. 4888-IX dated 27 May 2026, which enters into force in stages and becomes fully applicable on 24 March 2027, is intended to expand opportunities for suppliers.undefined

What are the key changes, and what should businesses supplying the public sector or planning to enter the public procurement market consider?undefined

▪️ Broader access to procurement opportunities. The Law is expected to reduce bureaucratic barriers and improve access to public procurement, particularly for small and medium-sized enterprises. The mechanisms it provides for include dynamic purchasing systems, competitive dialogue, innovation partnerships and framework agreements.undefined

▪️ Price is not the only competitive advantage. Quality, service and delivery times may together account for up to 30% of the overall tender evaluation score, rising to 60% in complex procurement procedures. This gives suppliers an opportunity to compete on the strengths of their products, rather than relying solely on aggressive price undercutting.undefined

▪️ Greater contractual flexibility. The Law allows greater flexibility in contractual arrangements between contracting authorities and suppliers and, more importantly, in amendments to existing contracts. This includes adjustments to the price of goods or services without the 10% cap that currently applies.undefined

▪️ Procurement thresholds expressed in euros. This is intended to reduce the impact of inflation on procurement planning and implementation.undefined

▪️ Preparing early for the new rules. Businesses should review how they prepare tenders and substantiate the quality advantages of their goods and services. Meanwhile, the introduction of numerous concepts drawn from EU legislation will require extensive clarification, including through secondary legislation.undefined

“In our view, the changes introduced by the new Law are unlikely to be revolutionary. Nevertheless, the legal framework it establishes has the potential to support the further development of the procurement system and its alignment with EU standards,” concludes Oleksandr Mostovyi, Counsel and Attorney-at-Law at PRAGNUM.undefined

Participating in public procurement requires careful attention to both contractual terms and the risks associated with performance. PRAGNUM assists businesses in resolving disputes arising from public contracts and provides defence in procurement-related criminal proceedings.undefined