Prozorro

Only Ukrainian state institutions, enterprises and organizations can be organizers of public tenders, but foreign companies are also allowed to participate in them. Since the beginning of the full-scale war, the ban applies only to representatives of Russia and Belarus.

How Many Foreign Companies Work on Prozorro?

Representatives of other countries make up less than 0.5% of the total number of suppliers of public tenders. But even during a full-scale war, they do not stop their participation, receiving and fulfilling government orders. This number does not include subsidiaries and branches of foreign businesses, because they are registered as Ukrainian legal entities, and therefore it is very difficult to count them – only to check them manually through the registers.

What Are the Statistics on Non-Resident Participants in 2022?

During 2022, based on the results of public procurement, agreements were signed with 202 participants representing 34 countries. 170 of them signed contracts after February 24. The total amount of all transactions with non-residents amounted to UAH 12.9 billion.

80% of the deals were concluded directly, as the organizers purchased specific goods and services. This distinguishes 2022 from previous years, in which most contracts were signed as a result of competitive procurement.

About the Countries Most Involved in Ukrainian Public Procurement

The largest number of non-resident suppliers in 2022 was from Poland – 28. Polish companies that concluded the largest number of contracts – 26 – for a total of UAH 2.09 billion.

In general, the TOP countries by the number of participants in Prozorro tenders are as follows:

1. Poland – 28 companies.
2. Germany – 26 companies.
3. Great Britain – 25 companies.
4. USA – 23 companies.
5. Switzerland – 18 companies.

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Despite the fact that the number of non-resident suppliers in 2022 was 2-3 times smaller than in previous years, the countries included in the TOP by the number of participants have practically not changed.

The TOP countries by the amount of concluded agreements in 2022 looked like this:

1. Poland – UAH 2.09 billion.
2. France – UAH 1.83 billion.
3. Switzerland – UAH 1.77 billion.
4. Turkey – UAH 1.68 billion.
5. Lithuania – UAH 1.17 billion.

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For comparison, in 2021, Great Britain was the leader in terms of the amount of concluded agreements – UAH 3.03 billion. But in 2020 and 2019 it was Turkey, with the sums of UAH 12.30 billion and UAH 15.46 billion, respectively.

Detailed statistics are available on this page.

Regarding Which Procurement Items the Most Expensive Deals Were Concluded?

The most expensive contracts between the state and non-resident suppliers concerned construction materials, fuel and repair works. In some cases, foreign contractors have become alternative replacements for Ukrainian contractors who stopped working during martial law.

The TOP 3 suppliers with the highest revenue from purchases in 2022 were as follows:

1. The contract for the largest amount – UAH 1.45 billion – related to the purchase of 19 tons of 25-meter railway rails. Ukrzaliznytsia concluded it with the French plant Saarstahl Rail. Previously, such products were purchased from "Metinvest-SMC", and the rails were manufactured by the "Azovstal" plant.
2. Ukrtransnafta and Naftogaz Trading Europe AG concluded a direct contract for the purchase of 25,000 tons of fuel worth UAH 1.2 billion.
3. Six agreements based on the results of six simplified procurements were concluded with Doğuş Construction and Trade for a total amount of UAH 1.2 billion. According to their terms, the contractor will repair six bridges destroyed during the war in the Kyiv region by the end of 2023.

May Ukrainian Companies Participate in Foreign Purchases?

Residents of Ukraine also have the right to submit their applications for participation in tenders abroad. In some EU and WTO countries – even on simplified terms – in accordance with the agreements signed between the states, for example, the Agreement on State Procurement.

How to Start Participating in Prozorro Public Procurement and Receive Government Orders?

If you are a resident or non-resident of Ukraine and want to participate in public tenders, follow these steps:

1. Register on the SmartTender.biz site as a "Supplier" using our instructions.
2. Find the tender you are interested in on this page and apply for participation.
3. Offer the best price offer to win. Please note that there is currently no auction stage in open trades with features, so you need to offer the best possible price already at the stage of submitting an offer.

Learn more about participation in public procurement from the instructions in the SmartTender Academy.

The article was written based on the material of Yaroslav Pylypenko, Dozorro TI Ukraine analyst.