Because Ukraine failed to deliver on three out of the 16 reforms promised to the European Union, the next tranche of assistance under the Ukraine Facility will be reduced — €3.05 billion instead of the planned €4.5 billion.

Overall, the Ukraine Facility is a program through which the EU committed to provide Ukraine with €50 billion in macro-financial assistance until 2027. These funds are intended to support economic stability, reforms, and the country’s recovery. However, the money is not a gift. It comes tied to commitments — specifically, to implementing a set of reforms. 

For the fourth tranche, Ukraine did not complete three reforms on time: updating legislation on ARMA, selecting judges for the High Anti-Corruption Court, and advancing decentralization. As a result, the upcoming tranche will be €1.5 billion less than planned. Since March of last year, Ukraine has already received €19.5 billion under the Ukraine Facility.

Since the law on ARMA reform was eventually adopted, albeit later than the deadline for this payment request, Ukraine will be able to justify and receive the corresponding funds during the approval of the following tranche. 

The DOZORRO TI Ukraine project analyzed procurement transactions funded by the Ukraine Facility to determine what the country has been spending its Western partners’ support on since the beginning of the year. This, in turn, shows which procurements could potentially face temporary underfunding due to the reduction of the new tranche. 

Procuring entities themselves indicate Ukraine Facility as the source of funding for procurement transactions on Prozorro. Unfortunately, they do not always do this accurately. At times, transactions are mistakenly marked as financed under the program — for example, food products procurement. We tried to clean the dataset, but not all errors could be filtered out. Conversely, some large projects, such as the construction of a shelter for the Andriivka Lyceum, were initially recorded without mention of the donor, and therefore did not make it into the analysis, even though they were indeed financed through the Ukraine Facility.

Statistics

From January 1 to July 31, 2025, we identified more than 2,000 procurement transactions on Prozorro financed through the Ukraine Facility initiative, worth a total of UAH 14.3 billion. Of these, over one thousand transactions have already been completed, with signed contracts amounting to UAH 6.8 billion. It is important to note that the text refers to signed contracts, not the funds that have actually been paid out. 

The largest allocation went to construction and current repairs — UAH 5.3 billion. Another UAH 1.6 billion was earmarked for school buses.

By estimated value, 71% of procurement transactions were conducted through special open bidding, nearly 25% through requests for price quotations, and 4% through direct contracts. According to BI Prozorro data, on average, two participants competed in each procurement. 

Who received the largest contracts

The biggest recipients of funds were.

• The state non-commercial enterprise Ukrainian Research and Practical Centre of Endocrine Surgery, Transplantation of Endocrine Organs and Tissues of the Ministry of Health of Ukraine — UAH 1.1 billion
• The Department for Construction and Architecture of the Rivne Regional State Administration — UAH 862 million
  
• The state institution Scientific and Practical Center of Pediatric Cardiology and Cardiac Surgery of the Ministry of Health of Ukraine — UAH 699 million.

Under the terms of the Ukraine Facility program, at least 20% of the funds (€1.05 billion) under its first component were to be directed to the needs of local self-government bodies. Since procuring entities themselves fill in the “source of funding” field, duplications or combinations of several sources often occur, making it difficult to establish the exact distribution. At the same time, among the signed agreements that were identified, more than UAH 1.94 billion — 28% of their total value — was channelled to local budgets.

Regional leaders in 2025

Kyiv region tops the ranking of regions by the value of signed contracts — UAH 2.2 billion. It is followed by Rivne region — UAH 979 million, Kharkiv region — UAH 516 million, Dnipropetrovsk region — UAH 503 million, and Sumy region — UAH 292 million. 

Hospital construction as a priority

One of the top priorities — and the area with the largest contracted amounts — is the modernization of healthcare institutions. These projects account for 37% of the total, or UAH 2.5 billion. Below are the largest projects scheduled for completion by the end of 2026.

Pediatric Cardiology Center in Kyiv

At the end of May, the state institution Scientific and Practical Center of Pediatric Cardiology and Cardiac Surgery of the Ministry of Health of Ukraine signed one of the largest contracts. The project involves reconstructing Hospital Building No. 1 with an annex and constructing a multidisciplinary building in Kyiv for UAH 695 million. This center provides care for pregnant women, mothers, and newborns with moderate-risk conditions, as well as for women with reproductive health issues. The new building will include inpatient and day-care facilities, an outpatient clinic, an intensive care unit for infants, and a stabilization ward for mothers. The contractor selected was Ukrbud-Project-Reconstruction LLC, owned by Volodymyr Mahliovanyi. Journalists from Nashi Hroshi link the company to the Kizimenko family, which previously had ties to the Yanukovych-era government and the pro-Russian administration in Crimea. The same journalists also uncovered possible overpricing of materials by more than UAH 10 million in this procurement, including waterproofing mats, paving tiles, paint, and other items. However, the contract price is dynamic, meaning it can be adjusted during the course of the works.

Endocrine Surgery Center in Kyiv

In June, the Endocrine Surgery Center signed a large contract to reconstruct its facilities. The project includes the redevelopment of three floors (6–8) and the addition of a technical floor, along with upgrades to the surgery unit, intensive care unit, and new wards. The works, worth UAH 600 million, will be carried out by Consulting-Bud LLC. 

This company has also received several other contracts for modernizing the center: UAH 350 million for major repairs of the 6th–9th floors, UAH 75 million for thermal modernization, UAH 26.3 million for drilling a well, UAH 28.1 million for constructing a rooftop boiler house, and nearly UAH 20 million for a gas boiler house. All of these projects are financed under the Ukraine Facility.

The owner of Kyiv-based Consulting-Bud LLC is Liubomyra Kozhushko, a former official of the Administration of the Verkhovna Rada. According to Nashi Hroshi, her company is implicated in a case involving potential embezzlement of funds during works on facilities of the State Service of Special Communications and Information Protection. 

Interestingly, in March the Center also attempted to find a contractor to renovate the 1st–5th floors of its premises on Klovskyi Uzviz in Kyiv. The estimated value of the works was UAH 1.03 billion, but the tender failed after the procuring entity rejected all bids. 

Military hospital in Rivne region

In July, the Department of Construction and Architecture of the Rivne Regional State Administration signed an agreement worth UAH 548 million with Modena PE. The contractor is to build a hospital in the settlement of Klevan for military personnel and internally displaced persons. The plans include a four-story building with intensive care units, inpatient facilities, an surgery unit, a laboratory, a rehabilitation center, a shelter, and a helipad.

This is already the third procurement related to the construction of this hospital. The first contract, signed with Modena in October 2023, was worth UAH 1.2 billion but was later reduced to UAH 497 million. Following project adjustments at the end of 2024, a new contract was signed for UAH 363.97 million, later reduced to UAH 344.44 million. All procurement transactions are financed through the Ukraine Facility program. The total project cost has reached UAH 1.3 billion. Works already completed include excavation, foundation, roofing, façade, plumbing, and ventilation. According to Rivne Regional State Administration head Oleksandr Koval, the hospital is 80% complete. 

Veterans’ hospital in Mykolaiv

In Mykolaiv, the Veterans’ Hospital is undergoing reconstruction. The contract, worth UAH 45.5 million, was awarded to Zhytloprombud-8 Construction Company, headed by Hryhorii Sterpul. According to Antykoruptsiinyi Vymir journalists, Sterpul has long been involved in the city’s political and construction life and is linked to the late deputy mayor Volodymyr Huller. Among the company’s co-founders is Olena Avdieieva, a candidate for the city council from the Servant of the People party in 2020. Journalists also discovered that in 2020, the company lent UAH 6 million to MP Maksym Yefimov, formerly affiliated with the Party of Regions and Petro Poroshenko Bloc. His name has appeared in investigations into the assets of the Yanukovych entourage.

Currently, the company is implicated in a court case concerning possible embezzlement during the reconstruction of a kindergarten and a school in a locality in Mykolaiv region.

Shelter construction: UAH 2 billion underground 

Around UAH 2 billion — roughly 30% of the total sum — has already been contracted for the construction of protective shelters for educational institutions. The largest number of shelters will be built in Dnipropetrovsk region — 8 facilities worth UAH 373 million. 

The biggest contract was signed with Project Alliance LLC. By the end of the year, the company is expected to complete a shelter for 500 people at Slobozhanske Lyceum No. 2 in Kharkiv region. The project, worth UAH 158 million, also includes football and basketball courts on the shelter’s roof. 

Another large project is a shelter for Sharivka Lyceum in Kharkiv region. The Department of Education of the Valky City Council signed a contract with Uniotransbuilding LLC worth UAH 125.2 million. The contractor, owned by Andrii Podosovskyi, must complete the facility by the end of the year. Journalists have linked Uniotransbuilding to Ruslan Trebushkin, the former mayor of Myrnohrad and Pokrovsk.

For Verkhivtseve Lyceum No. 1 in Dnipropetrovsk region, a shelter is being built for UAH 94 million. The Department of Education, Culture, Youth, and Sports of the Verkhivtseve City Council contracted Gefest Bud VM LLC to construct a facility for 600 people by year’s end. Dozorro experts analyzed the project estimate and identified potential overpricing of construction materials, including rebar, concrete, insulation, plaster, and paint, that could lead to an overpayment of UAH 9.6 million. Since the contract price is dynamic, there is hope that costs will be adjusted during construction to match market levels. Gefest Bud VM, registered in Verkhivtseve, is owned by Andrii Ihnatenko. Until March 2025, co-owners included Maksym Odnorob and Volodymyr Kordulian, a city council member from Opposition Platform For Life, who was twice held accountable for late asset declarations.

In the village of Vyhoda, Odesa region, a shelter is being built for the Vyshenka kindergarten and Vyhoda Lyceum at a cost of UAH 97.4 million. Designed for 711 people, the project was ordered by the Department of Education, Culture, Youth, and Sports of the Vyhoda Village Council and contracted to Davmir Stroi LLC. Dozorro experts found a potential overpayment of almost UAH 9 million, with inflated prices for rebar, concrete, and bricks. Since the contract price is fixed, the procuring entity cannot easily adjust material costs during construction. According to Nashi Hroshi, in 2023 police opened cases into the embezzlement of budget funds by Nerubaivske Village Council officials and the companies Davmir Stroi and Delux Development Construction Company. Investigations are also ongoing into overpricing for roof repairs of the Odesa Regional Center, contracted to Davmir Stroi.

In Dnipro, the Department of Capital Construction commissioned the construction of a shelter on the grounds of Gymnasium No. 118. A contract worth UAH 87.5 million was signed with Stroiinvest Construction Company LLC. By the end of the year, the contractor is expected to build a shelter for 500 people. The company is owned by Nataliia Lazar, previously owned by Denys Ostrovskyi — founder of another Dnipro-based firm, Big City Group, which Lazar also once headed. Stroiinvest currently leases equipment from Big City Group. Stroiinvest appeared in a Bihus.Info investigation: during the Great Construction program, Ostrovskyi was recorded discussing the allocation of budget funds with the program’s consultant, Yurii Holyk.

Major repairs of canteens: another focus in educational procurement transactions

Funds from Western partners are also being directed to modernizing school kitchens and canteens. In most cases, the repairs are commissioned by local authorities or regional departments of education and construction. The total value of signed contracts has already reached UAH 135 million. Below are the three largest procurement transactions.

One of the most expensive projects is the renovation of the canteen at Krasyliv Lyceum in Khmelnytskyi region, scheduled for completion by the end of the year. The Khmelnytskyi Regional Single Customer Service signed a UAH 17 million contract with Galeon Company LLC.

In Sumy region, the Department of Education, Youth, Sports, Culture, and Tourism of the Buryn City Council signed a UAH 15.6 million contract with Avanhard-N Private Enterprise. The project involves a major overhaul of the canteen and cafeteria at Buryn Lyceum No. 1 named after V.M. Kravchenko, with works to be completed by the end of the year. 

In Kropyvnytskyi, the city’s Department of Education signed a UAH 15.1 million contract with Bud-Control LLC. The works at the Intellect Gymnasium include a full-scale renovation of its canteen. 

School buses 

Contracts worth UAH 1.6 billion have been signed for the procurement of school buses. With these funds, over 400 vehicles have been ordered for educational institutions across the country. 

Kyiv region accounted for the largest sum — UAH 289 million. At the end of May, the Department of Education and Science of the Kyiv Regional State Administration signed a UAH 147 million contract for 35 buses. Later, it signed two more contracts: one for UAH 120 million for 33 buses, and another for UAH 22 million for 6 buses.

The largest supplier in terms of contract value was Etalon Auto Trading House LLC with UAH 369 million. Meanwhile, the highest number of contracts — 11 agreements with 10 procuring entities, worth UAH 42 million in total — went to Autohrad-2007 LLC. 

Multimedia equipment for the New Ukrainian School

Contracts worth UAH 152 million have been signed for various multimedia equipment for the New Ukrainian School (NUS). These funds are allocated for interactive panels, mobile stands for panels, monitors, and other technology for the educational process. 

Odesa region leads in this category: 39 procuring entities signed contracts worth UAH 22 million. Rivne region ranked second, with 33 procurering entities contracting UAH 12 million worth of equipment. Ivano-Frankivsk region followed in third place, with 30 procuring entities contracting equipment worth UAH 14 million.

The largest supplier in terms of both contract value and number of agreements was Interactive Learning Systems LLC, which signed 29 contracts worth UAH 20 million.

What’s next? 

Tenders worth over UAH 3.2 billion remain active. Among them is a large-scale tender for the reconstruction of the regional rehabilitation and recovery center in Chernihiv, with an estimated value of UAH 715 million. However, no contractor has been found yet — the only bidder’s proposal was rejected, and the tender will likely be re-announced.

New tenders have also been announced for shelter construction. One of the most expensive is a UAH 175 million project at Dnipro Lyceum No. 144 named after Levi Yitzchak Schneerson. Another UAH 177 million is planned for a protective facility at Lyceum No. 6 in the city of Samar, Dnipropetrovsk region.

The Medical Procurement of Ukraine state enterprise announced a UAH 542 million tender for equipment to establish nuclear medicine centers. This high-tech equipment is used for diagnosis and treatment with radioactive isotopes. The tender was suspended following a complaint by one bidder to the Anti-Monopoly Committee of Ukraine, which argued that certain requirements artificially restricted competition, including inflated technical specifications and restrictions based on country of origin. The bidder also claimed that some conditions contradicted the law and created discrimination. The AMCU partially upheld the complaint and ordered the procuring entity to amend the tender documentation. The bidding stage is currently ongoing.

Dozorro continues to monitor procurements financed under the Ukraine Facility program. In June and July alone, we analyzed 20 tenders and found potentially inflated prices in 12 of them, totaling over UAH 65 million.

Conclusions 

The analysis of procurements financed under the Ukraine Facility shows that most funds are directed towards hospital construction and reconstruction, as well as the building of protective shelters for schools and kindergartens. Contracts worth more than UAH 2.5 billion have already been signed for healthcare facilities, and about UAH 2 billion for shelters in educational institutions. 

These facilities are critically important in wartime conditions. Yet they are precisely the projects that risk being left unfunded if Ukraine continues to receive reduced tranches under the Ukraine Facility due to unfulfilled reforms. Every cut in funding means a delayed hospital, an unbuilt shelter, or a canceled renovation that could have protected children, doctors, or soldiers. 

This material is funded by the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.