State Enterprises Suffer Losses of 2.8 Billion UAH Due to Exchange Rate Differences in Foreign Procurement

In a shocking revelation, Ukrainian state enterprises have faced direct financial losses totaling 2.8 billion UAH over the last four years. These losses stem from exchange rate discrepancies encountered during public procurement processes involving non-resident suppliers. The financial impact arises from the difference between the exchange rate of the hryvnia at the time of the tender winner's announcement and the rate at the time of payment for goods purchased in foreign currency.

This alarming information was shared on social media by Dmitry Kiselevsky, the Deputy Chairman of the Committee on Economic Development of the Verkhovna Rada of Ukraine. He cited a study he initiated regarding public procurement practices among nine of the largest public procurement entities in the country. Kiselevsky emphasized that the exchange rate differences during settlements with non-residents lead to discrimination against Ukrainian manufacturers and resident suppliers.

Kiselevsky pointed out that the actual hryvnia price paid by state companies on the day of settlement with non-residents is often higher than the price at the time the tender winner was determined. This suggests that another participant could have won the tender had the exchange rate remained stable.

According to research conducted by the State Institute of Informatization and Economic Modeling, the largest losses from exchange rate differences were recorded in companies such as NAEC Energoatom, which lost 1.59 billion UAH, Ukrgazvydobuvannya with 671 million UAH, and Ukrzaliznytsia, which suffered losses of 352 million UAH.

In addition to direct financial losses, there are also indirect losses associated with the lack of tax revenues. Ukrainian manufacturers pay taxes in Ukraine, while non-resident suppliers do not contribute any taxes to the Ukrainian budget. This situation creates additional financial losses for the state.

Kiselevsky provided a vivid example: "Imagine a procurement where a non-resident supplier offered a price of 1 million dollars at an exchange rate of 39 UAH per dollar. They were chosen as the winner, comparing their offer of 39 million UAH to that of a Ukrainian manufacturer at 39.5 million UAH. The non-resident won, and their price was fixed in foreign currency. However, when it came time to pay, the exchange rate changed to 40 UAH per dollar. To pay 1 million dollars, the buyer had to spend 40 million UAH. They ended up spending more money than planned and more than they would have spent on the Ukrainian product. It is abnormal that the currency risk falls on the buyer. Only the non-resident supplier benefits from this, as they do not pay anything into the Ukrainian budget. This results in losses for the state, state companies, and discrimination against Ukrainian manufacturers. This needs to change."

The procurement study covering the years 2022-2025 was conducted by the State Institute of Informatization and Economic Modeling. The analysis included 511 procurements carried out with non-resident companies, totaling 124.5 billion UAH. The study focused on the procurement practices of nine major Ukrainian customers, including Energoatom, Ukrgazvydobuvannya, Ukrzaliznytsia, Medical Procurements, Ukrtransnafta, Ukrnafta, Ukrenergo, Ukrhydroenergo, and Lesy Ukrainy.

Information regarding procurement from non-residents was provided by the companies in response to a parliamentary inquiry from Kiselevsky. The findings of the study were presented at a meeting of the Working Group on the Operational Processing of Public Procurement Issues with Localization, organized by the Committee on Economic Development of the Verkhovna Rada of Ukraine.

Earlier reports indicated that in February 2026, the Cabinet of Ministers of Ukraine altered the rules for evaluating proposals in public procurement, which may affect future procurements and their effectiveness.