Companies considered sponsors of Russian war against Ukraine will not be able to supply products to Ukrainian army

Tuesday, 13 February 2024, 18:46

International companies listed by the National Agency on Corruption Prevention (NAPC) as war sponsors will be unable to supply products to the Ukrainian army.

Source: Dmytro Bihunets, the State Logistics Operator's director of risk management and compliance, stated this during a procurement presentation, reports Liga.net

Details: According to Bihunets, the State Logistics Operator employs additional criteria when vetting suppliers to ensure integrity.

Sanctions will be considered not only by the National Security and Defence Council, but also by Ukraine's partners, including the United States, Canada, the United Kingdom, and the European Union.

Quote: "The sanctions apply to both the potential supplier and the products offered by the supplier," Bihunets explained.

Furthermore, suppliers with any connection to Russia or Belarus, a criminal record, debts, or bankruptcies are not permitted to participate in the bidding process.

One of the criteria for a ban is a breach of obligations to supply products to the Ministry of Defence in 2022-2023.

"We also introduced an additional criterion, the presence of a participant on the list of international war sponsors. This list is administered by the NACP and is constantly updated. We believe it is fair to prevent potential participants who have been recognised by the NACP as international sponsors of war from participating in our tenders," the representative of the State Logistics Operator explained.

At the same time, Bihunets did not name specific companies because the tender process is still ongoing. "We don't want to discriminate against suppliers who are still submitting offers," he added.

According to the NACP, the war's sponsors include the Auchan and Metro retail chains, as well as the product companies Bonduelle, Mars Inc., Mondelez International, Nestle, Pepsi, and Viciunai Group.

Background: 

  • The Ministry of Defence and the State Logistics Operator agency presented a new procurement architecture for the army, which will go into effect on 1 April.
  • The Ministry of Defence suggested that supermarkets participate in army purchases; this service will be operational beginning in April.
  • The State Logistics Operator announced the first Prozorro tenders for the purchase of Armed Forces products.

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