This Resolution of the Cabinet of Ministers of Ukraine No. 807 dated June 24, 2026, serves as a mechanism for implementing international financial assistance from the European Union aimed at supporting Ukraine’s defense-industrial complex. The document defines clear procedures for the use of loan funds obtained under the Loan Agreement for the procurement, repair, and modernization of weaponry. The Resolution establishes strict control over the targeted use of resources, including monitoring by the European Commission.<\/p>\n
### Structure and Main Provisions
\nThe Resolution consists of a regulatory part and three approved annexes (procedures):
\n1. **Procedure for the use of funds:** defines the administrator (Ministry of Defense) and the recipient (Defense Procurement Agency), as well as the areas of expenditure.
\n2. **Procedure for interaction:** regulates cooperation between the Ministry of Defense, security sector authorities, and the Agency regarding the formation of product lists, auditing, and reporting.
\n3. **Amendment to Resolution No. 1275:** integrates new defense procurement rules into the general legal regime of martial law.<\/p>\n
**Changes compared to previous versions:** The main difference lies in the creation of a specialized mechanism for accounting and controlling EU funds, which provides for the opening of separate accounts at the National Bank and the Treasury, as well as granting the European Commission direct access to monitor these accounts.<\/p>\n
### Most Important Provisions for Practical Use
\n* **Fund Administration:** The Ministry of Defense acts as the primary administrator, and the State Enterprise “Defense Procurement Agency” acts as the direct executor of procurements.
\n* **Foreign Exchange Transactions:** Conducting settlements in foreign currency under foreign economic contracts is permitted, as is the conversion of funds to ensure defense needs.
\n* **Prepayment:** Advance payments of up to 100% of the cost of products are permitted if justified by the specifics of the contract (production cycle, seasonality, etc.).
\n* **Transparency and Audit:** Strict reporting requirements have been introduced. The Ministry of Defense is obliged to submit monthly reports on payments to the European Commission, as well as to provide access to documents and facilities for conducting audits (in particular, with the participation of OLAF and the European Public Prosecutor’s Office).
\n* **Limitations:** It is prohibited to direct these funds to purposes not provided for by the Agreement and EU Regulation, or to finance expenses already covered by other sources (avoidance of double funding).<\/p>\n