Ukraine’s Defense Ministry Suspends Armored Vehicle Orders

Since the start of the year, the Defense Ministry has not contracted any armored vehicles in the first months, which typically determine equipment supply for the entire year 2026.

Representatives of several Ukrainian armored vehicle manufacturers shared this with Militarnyi.

Arsen Zhumadilov, director of the Defense Procurement Agency, confirmed the absence of new orders this year, saying armored vehicles continue to be supplied under last year’s contracts.

“Yes, we are probably talking about a pause for a certain period. We are currently supplying armored vehicles under contracts concluded last year.

The General Staff and the Defense Ministry understand that these volumes will likely be insufficient and that additional orders will follow. But when that will happen and in what volume remains unclear,” Zhumadilov added.

He said the army is currently receiving equipment under two contracts. New orders will be placed only after the General Staff provides updated requirements, which is not expected before the second half of the year.

The traditional period for concluding supply contracts ends in March, allowing manufacturers to deliver products over the next 9–12 months. A six-month pause in orders creates a risk of a significant slowdown in deliveries.

“If agreements are signed in July, then even in the best-case scenario, the first batches will be delivered at the end of the year,” Artem Yushchuk, executive director and co-founder of Inguar, noted.

In addition to Inguar, representatives of Ukrainian Armored Vehicles, UkrArmoTech, and other companies also confirmed the suspension of orders to Militarnyi.

“I confirm that we have not signed a contract with the Defense Ministry. We are completing carryover contracts from last year and usually sign new ones in March, but now it is the end of the month, and there is still no contract. We are in contact with Defense Forces units, so we know the vehicles are needed. But there is a difficult financing situation, and priority is being given to drones and other critical areas,” said Hennadii Khirhii, CEO of UkrArmoTech.

A key reason for the suspension is a sharp reduction in defense spending amid the potential disruption of a €90 billion EU loan program following Hungary’s veto.

Under the plan, two-thirds of the funds allocated for 2026-2027 (about €60 billion) are intended for military support. The implementation of this program is seen as critical for Ukraine’s defense capability in both the short and long term.

Ihor Fedirko, executive director of the Ukrainian Council of Armaments, said the slowdown reflects several factors, including budget constraints, shifting priorities, and changes in the procurement model. He added that uncertainty over international financing is affecting decision-making.

According to Fedirko, this is not a full halt in state orders, but rather “a lower contracting pace than the market expected in parts of the first quarter and the first half of the year.”

“The situation is not the same for all customers. While the Defense Ministry has slowed contracting at certain periods, the National Guard continues to sign contracts. So this is not a complete stop of the system,” he said.

According to Militarnyi, at least two Ukrainian defense companies signed major contracts earlier this year to supply armored vehicles to the National Guard and the State Border Guard Service.

Fedirko also rejected the idea that the Defense Ministry could fully stop armored vehicle procurement in 2026.

“I would not conclude that the military is abandoning armored vehicle purchases for the rest of 2026. In February, the Defense Ministry reported on the digitalization of the military equipment supply chain, including armored medevacs, Kozak and Novator armored vehicles, and other systems. This indicates the direction remains active and the supply system continues to develop,” he said.