Parliament has amended the public procurement rules: what the new law entails

Katerina Melnychenko
Katerina Melnychenko Deputy Editor-in-Chief
Parliament has amended the public procurement rules: what the new law entails
The document amends the procedures and is expected to release $3.5 billion in World Bank funding.
The Verkhovna Rada has passed Bill No. 11520 on new public procurement rules in its entirety. According to MP Yaroslav Zheleznyak, the bill was backed by 245 MPs, and its adoption is expected to unlock $3.5 billion in funding from the World Bank.

MP Yaroslav Zheleznyak announced the results of the vote. Bill No. 11520 is a government bill and was registered with the Verkhovna Rada on 23 August 2024 as a draft of the new law “On Public Procurement”.

The Verkhovna Rada supported Bill No. 11520 on public procurement.

According to Yaroslav Zheleznyak, 245 MPs voted in favour of the bill as a whole. The MP called it the “World Bank law” and stated that it should unlock $3.5 billion.

The bill was submitted by the Cabinet of Ministers. In the Verkhovna Rada’s database, the document is classified as relating to European integration, with the Committee on Economic Development designated as the lead committee.

On 19 May 2026, the relevant committee recommended that the bill be adopted at the second reading and in its entirety, with technical and legal amendments.

Why this law is important

The law updates public procurement rules and brings the Ukrainian system closer to EU standards.

The Ministry of Economy previously explained that draft law No. 11520 was designed to ensure effective procurement in a transparent and competitive manner, as well as to fulfil Ukraine’s international legal obligations in the field of public procurement.

The document was also linked to World Bank funding. Following the initial failure of the vote on 29 April, the media reported that $3.5 billion in aid could be at risk. At that time, the bill fell three votes short of passing, after which it was sent for a second reading.

What procedures will be introduced

The bill expands the list of procedures and mechanisms that contracting authorities may use.

In addition to open tenders, the bill provides for restricted tenders, competitive dialogue, innovation partnerships, framework agreements, dynamic purchasing systems and joint procurement.

The law is also intended to regulate the use of electronic catalogues, new approaches to procurement, and procedures designed to align more closely with European rules.

What will change for contracting authorities and businesses

The new rules are intended to make procurement more flexible for contracting authorities and more transparent for market participants.

This applies not only to traditional open tenders but also to tools that can be used for more complex procurements – where not only price but also quality, technical specifications, innovation or long-term cooperation are important.

The Anti-Corruption Centre had previously drawn attention to controversial provisions in the draft law. Subsequently, the organisation reported that the relevant committee had removed from the document provisions that could have led to corruption and negatively impacted public procurement.

What happened before

On 17 September 2024, the Verkhovna Rada supported draft law No. 11520 at first reading. At that time, 289 MPs voted in favour of it.

On 29 April 2026, parliament failed to pass the bill at its second reading. According to media reports, it fell three votes short, and the bill itself was described as crucial for securing funding from the World Bank and fulfilling commitments to the EU.

Following this, the Rada referred the bill back for a second reading. Now, according to Zheleznyak, the bill received 245 votes and was passed in its entirety.

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