Public Procurement In Ukraine Research Articles

The political economy of public procurement in Ukraine

This article links Ukraine’s response to Russia’s unprovoked invasion in February 2022 to institutional reforms in the decade before the current war. After the Revolution of Dignity in 2014, Ukrainian civil society, business, and government jointly established an institutional framework to monitor public procurement. The problem of devising institutions to monitor behavior on an ongoing basis is not generally solved through constitutional reforms and revolutions. Public procurement reforms contributed to a culture of coproduction of monitoring that has persisted even when pressure was exerted on open government after Russia’s full-scale invasion. The reforms implemented after the Revolution of Dignity created a robust institutional framework to scale up institutions to monitor public procurement during Ukraine’s ongoing reconstruction effort.

FEATURES OF PUBLIC PROCUREMENT IN EXTREME CONDITIONS OF STATE FUNCTIONING

The article reveals the role of public procurement in the public finance system of Ukraine in the extreme conditions of its operation in the last 15 years and the need to overcome the long-term consequences of the coronavirus pandemic and Russia's war against our country. The need to strengthen state regulation of this process is emphasized, since in the extreme conditions of the functioning of Ukraine, only the state can effectively resist the specified challenges, as well as the so-called "black swans". At the same time, the erroneous transfer of the so-called military tax on citizens' incomes from the budgets of local self-government bodies to the State Budget of Ukraine in 2024 is emphasized, which contradicts the provisions of the Budget Code of Ukraine.
 The authors also analyzed the features of public procurement in the EU countries to eliminate the consequences of the coronavirus and the energy blockade of the countries of the European Union by Russia after its war against Ukraine. It is emphasized that in these conditions EU countries accelerate the implementation of "green" projects and allocate additional funds for them, which is important to take into account in Ukraine in the process of rebuilding its economy.
 The article examines the problems that exist in Ukraine under martial law when conducting tender procurements and taxing their Ukrainian participants, as well as problems in the activities of the country's controlling structures in the field of public procurement control and planned ways to overcome them, taking into account the experience of the countries of the European Union. primarily Poland. It is emphasized that a significant part of the problems in the defense sphere of Ukraine can be solved by innovative entrepreneurship with a significant increase in public orders for similar products.
 The authors also substantiate the directions of reforming the mechanism of public procurement in Ukraine in the conditions of reconstruction, taking into account the experience of the EU countries regarding measures to introduce the European Green Course; identified financial positives and problems of public procurement after the entry into force of the new version of the Law of Ukraine "On Public Procurement"; researched forms of financial responsibility of participants and customers of public procurement in Ukraine under martial law and their effectiveness.

ДОСЛІДЖЕННЯ РЕЗУЛЬТАТИВНОСТІ Й ЕФЕКТИВНОСТІ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ В УКРАЇНІ

The effectiveness and efficiency of public procurement in Ukraine has been studied. It is emphasized that public procurement is a powerful tool for influencing the country's economic development, which makes it possible to form a sustainable and efficient economic system. It is emphasized that the conclusion of the contract itself does not certify the effectiveness of the purchase, for this it is necessary that the parties fully fulfill the terms of the concluded contract. It is noted that due to closed data in 2022, the real number of concluded contracts and their further legal fate (implementation or termination) is unknown. The state of war had a striking impact on the effectiveness of competitive procurement at the stage of contract execution. In 2022, almost twice as often as in 2021, the term of the contract was extended, which was caused by delays in financing customers, and disruption of supply chains, destruction of roads, delays at the border. fuel problems). The introduction of electronic procurement in Ukraine made it possible for small and medium-sized businesses to participate in tenders, which significantly increased competition between participants. The main achievement of the introduction of the electronic system is the saving of public funds. The effect of saving budget funds is calculated in the system as the difference between the expected value of the purchase and the actual value of the concluded contracts. Such an assessment does not fully show the effectiveness of procurement and can only be used for operational analysis. It is proposed to consider the economic efficiency of public procurement as a comprehensive indicator of efficiency at different levels of this system, as a synergistic result of the interaction of all institutions and mechanisms of this system. In practice, it is suggested to use a set of indicators that can be used for the purpose of a more detailed and qualitative assessment of purchases at different levels. Today, the indicator of saving budget funds differs due to the lack of a single method of analysis. The proposal on the need to develop and approve at the legislative level an analytical assessment of the effectiveness of budget funds, which could be used in the system, has been updated.

International experience of public administration and control in the public procurement

Introduction. The regulation of public procurement has always attracted legislators around the world, because the global economy with its economic, legal and political relationships is closely intertwined with the micro-economies of each state. The paper summarizes the international experience of public administration and control in the public procurement and its adaptation in Ukraine in the context of globalization processes. The purpose of the paper is the generalization of modern concepts of state regulation and control of public procurement; adaptation of foreign experience in the efficiency of public procurement in Ukraine. Results. The experience of foreign countries shows the presence of two powerful groups of system control in different countries: two-channel and single-channel system control with courts of ordinary and specialized jurisdictions. Among the key factors inherent in the foreign control system are such as multi-channel, variability, regulation and preventive. Taking into account the EU Directives on system control and legal protection in terms of effective procurement allows maneuvering between public law and civil law, which disciplines actors of public procurement. The domestic system control in the field of public procurement lacks effective regulatory and methodological documents capable of preventing at a high level any manifestations of abuse of government power (the experience of Singapore and the UK). In particular, in terms of regulating the effectiveness of planning, conducting and monitoring the work of state control bodies over public procurement. The Ukrainian system of public procurement lacks such features as impartiality in tenders, high examination of procurement performance, and civil control by society. Along with financial, quantitative, and qualitative losses, political losses are also characteristic of Ukraine in terms of the deterioration of the investment climate in the country, the weakening of the country’s economic and financial system, violation of the principles of free competition, etc. Conclusion. It seems advisable to develop preventive scenarios for «tracking» the procurement system with calculation of the probability of abuse of power, that is, the «chance» on each channel: from the announcement of the tender to its completion. All this together will work like the British or Singaporean model of strengthening the political image of the country, preventing any manifestations of corruption in this area of activity. A necessary innovation seems to be a preventive-oriented and risk-oriented approach to government regulation and control in the public procurements.

THEORETICAL ASPECTS OF MEASURING THE EFFICIENCY OF PUBLIC PROCUREMENT EXPENDITURE

Introduction. Funds of territorial communities are an important financial tool for the development of such entities of local self-government. Effective use of funds is the main problem in the development of the community, including in the implementation of public purchases, which are the target directions of the formation of social and economic benefits of the residents of the community. There is currently no model for evaluating the effectiveness of expenditures during public procurement and it is an object of study and formation at the theoretical and practical levels. The purpose of the article is to determine the theoretical and methodological aspects of public procurement and to develop criteria and levels of evaluation of the effectiveness of public procurement in Ukraine. Results. The principles of public procurement and the main approaches of scientists to identifying criteria for the effectiveness of public procurement have been studied. It was established that the efficiency criteria should be determined on the basis of: current legislation, i.e. normative-legal documents on public procurement and on the basis of generally accepted scientific norms. It is justified that the implementation of public procurement should be based on the principle of balancing economic, ecological and social criteria in order to achieve the most effective procurement in conditions of sustainable development. Conclusions. Proposals for identifying criteria for the most effective public procurement are substantiated, in particular: reducing the level of corruption, creating conditions for comfortable living of the population, increasing the economic use of natural resources, increasing the economic use of public funds, etc. The levels of evaluation of the effectiveness of public procurement and the peculiarities of their evaluation at each of the proposed stages are highlighted.

The concept of "void contract" in public procurement

The way of origin and consolidation in the public procurement procedure of the institute of a void contract, which was first formulated as "the result of invalid bidding", is analyzed.
 The scientific developments devoted to the issues of voidence of transactions and scientific research in the field of public procurement in Ukraine are summarized.
 The author's definition of the procurement contract is given: it is an agreement between the Customer and the Participant (more parties), aimed at establishing, transferring or terminating property rights and obligations, which is concluded as a result of the procurement procedure and provides for ownership of property services or works.
 The grounds for declaring the procurement contract null and void are listed, namely: concluding a procurement contract before or without the procurement procedure, concluding a procurement contract that differs from the content of the tender offer / offer based on the results of the electronic auction; concluding an agreement during the period of appealing the procurement procedure to the Antimonopoly Committee of Ukraine; concluding a contract in violation of the terms.
 The main conceptual differences between a void contract in public procurement and the civil law doctrine of a void transaction are established and characterized. The main difference from void transactions is that the parties and third parties do not have to obtain a court decision to apply the consequences of declaring a transaction invalid, but in cases established by the Civil Code of Ukraine, a void transaction may be recognized by a court as valid.
 The notion of "void contract" in public procurement is critically analyzed through the prism of understanding and essential conditions of general civilization of invalid contract, as it is not possible to recognize such a contract valid in court.
 The definition of a void contract in public procurement as one that violates public order, is concluded in violation of the procedure provided by law, and makes it impossible to recognize it valid in court.

Legal regulation of public procurement: the EU experience

The article analyses the development process and establishment of the public procurement institute in Ukraine and foreign countries, examines the organizational and legal regulation of public procurement in Ukraine, identifies legal regulation of public procurement in the European Union and ways to implement the experience of European legislation in the field of public procurement in Ukraine.

Public procurement in Ukraine: analysis of advantages and disadvantages

Public procurement is a complex process. With the help of public procurement, governments and government agencies purchase products, services, work, creating expenditures of the state budget and taxpayers. The purpose of implementing the e-procurement system was to reduce these costs and overcome the corruption component in this area. However, there are still many issues related to the inefficiency of certain components of this system. It is determined that domestic scientists identify a narrow range of benefits of the public procurement system, which is reduced to overcoming corruption and saving budget funds. The domestic scientists identify a narrow range of benefits from the use of public procurement. This is overcoming corruption and saving budget funds. In contrast, the foreign scientists see the public procurement system as an effective tool for sustainable development, innovation. The article analyzes the shortcomings and weaknesses of public procurement at each stage of their implementation, which allows identifying the main areas of improvement of the public procurement system, and summarizes the main advantages.

Public procurement in Ukraine in the context of international requirements: the way to improve a legal regulation

The purpose of the study is to characterize the System of national legal regulation of public procurement of Ukraine, to determine the features of the impact of international law on the Ukrainian procurement system, as well as ways to improve it. The research methodology is based on an integrated intersectoral approach and a comparative approach. The effectiveness of the current legislation of Ukraine on public procurement was determined by means of the "ex post" assessment methodology, and the methodology of legal monitoring, including as a result of the study of court decisions. The results showed that the legal regulation of government procurement on the territory of Ukraine is undergoing significant changes, in connection with the harmonisation of legislation to international (worldwide and regional) standards; the majority part of the WTO GPA and Association Agreement provisions in the field of government procurement has already been implemented or is being implemented by Ukraine. Indeed, taking into account the access to the EU market obtained within the GPA framework, Ukraine has already not so many external incentives for the full compliance with the obligations to harmonize the legislation under the Association Agreement than it was expected at its signing.

Електронна система «Prozorro» як революція в системі публічних закупівель в Україні

The article is devoted to the coverage of the electronic system "Prozorro" as a means of forming an effective and transparent system of public procurement in Ukraine. The main worldview approaches to the definition of public and public procurement are studied. The legal framework of public procurement in Ukraine is analyzed. The reasons for the creation of "Prozorro", the main provisions of this system and the conclusion about its positive impact on public procurement are identified. It is concluded that the main purpose of the introduction of "Prozorro" is to create an effective, transparent and open system of public procurement in Ukraine, which will bring our country closer to EU accession.

Comparative analysis of classifications of public procurement

Relevance of the research topic. The article is devoted to theoretical and practical aspects of classification of public procurement in Ukraine. Formulation of the problem. The development of a scientifically sound classification of procurement, which would provide a combination of theory and practice of public procurement, allowed for a more accurate assessment of the effectiveness of the use of budget funds. Analysis of recent research and publications. The article provides an overview of current publications on public procurement management, as well as scientific approaches to the classification of public procurement. Selection of unexplored parts of the general problem. The author emphasizes the insufficiency of domestic works on the classification of public procurement, taking into account the latest changes in the legislation of our state. The purpose of the article is to analyze the classification criteria of public procurement, as well as to find ways to improve the classification of public procurement. Research methods: dialectical, analysis and synthesis, empirical, statistical. Work results and conclusions. The article considers the theoretical and practical principles of classification of public procurement, analyzes scientific approaches to the classification of public procurement, identifies the main criteria for the classification of procurement, improved the classification of public procurement. Field of application of results. The obtained results can be used primarily in procurement procedures, as well as in improving the economic policy of the state. Novelty: The proposed classification of public procurement, which corresponds to the modern stage of the formation of the sphere of public procurement, reproduces the structure and organization of procurement activities in Ukraine.

Structural-functional providing of the operative-investigative crime prevention in the field of public procurement in Ukraine

The aim of the article is to determine the readiness level to prevent crime in the field of public procurement by the criminal police units of the National Police of Ukraine. The methodological basis of the study is the Constitution of Ukraine, other domestic legislative and other normative acts which regulate operational-search activities and criminal procedure, general theoretical and special legal literature, which show the topic under study, and encyclopedic sources. The method of analysis, the system-structural method, sociological methods (questioning, interviewing), formal-logical method, comparative method, modeling method are used in article. To achieve the goal of the article in the structure of the criminal police of the National Police of Ukraine were identified unites which carry out operational-search crime prevention in the field of public procurement, analyzed the structure of the units and determined their functions in crime prevention. The results of the study show that the structural and functional support of the operational-search crime prevention in the field of public procurement by the criminal police is not at the proper level.

Features of using the electronic system ProZorro in public procurement in Ukraine: problems and ways to overcome them

Summary The purpose of the article is to study the problematic aspects of the functioning of the electronic public procurement system ProZorro in Ukraine and to develop proposals for minimizing abuses in the field of tender procedures. Research methods: The article uses general scientific research methods, in particular: synthesis analysis – in the study of scientific literature and determining the features of the electronic public procurement system ProZorro; economic and statistical analysis and comparison – with indicators of public procurement in Ukraine; generalization – when developing recommendations for minimizing abuses in the field of public procurement within the electronic system ProZorro. Scientific novelty: is to determine the main mechanisms of abuse in the field of public procurement in order to obtain illegal benefits: the fragmentation of contracts and the development of sub-threshold trade procedures and justification of ways to minimize them. In particular, in the article It is substantiated that non-competitive tender offers carry high corruption risks and lead to inflated prices for the supply of goods, services and works. It is proposed to amend the Law of Ukraine «On Public Procurement» in order to prohibit the conclusion of additional agreements after the tender; prohibition to change the conditions of the tender and tender documentation after the announcement of tenders; prohibitions to combine goods into one lot and set maximum payment terms for delivered goods for more than 30 calendar days. Conclusions: The study concludes that the electronic public procurement system ProZorro has a positive impact on the development of public procurement in Ukraine, as it increases the transparency of bidding and tender procedures, expands opportunities for participation in tenders of small and medium-sized businesses and more. However, shortcomings, first of all, in the law enforcement and judicial system of Ukraine are caused by frequent cases of corruption schemes in the public procurement system both within the ProZorro system and outside it. Elimination of corruption schemes in the public procurement system is possible subject to amendments to the Law of Ukraine «On Public Procurement». Keywords: public procurement, ProZorro, tender, tender offer, electronic bidding, competitive and non-competitive procedures.

Actual problems and directions of optimization of public procurement in Ukraine

The purpose of the article is to study the transformation processes in the field of public procurement in Ukraine in the context of providing opportunities for micro, small and medium-sized enterprises to access productive participation in public procurement. Methodology of research. The solution of the tasks was carried out using general scientific and specific research methods: analysis and synthesis, systematization and generalization, dialectical approach. Findings. The article examines the transformation processes in the field of public procurement in Ukraine in the context of providing opportunities for micro, small and medium-sized enterprises to access productive participation in public procurement. It was determined that the volume of public procurement in Ukraine is constantly increasing and, according to the results of 2019, their value amounted to UAH 1,238 billion, which is 31.15 % of the country's GDP. Despite this, the sphere of public procurement in Ukraine is still not developed, the opportunity for micro, small and medium-sized enterprises to access productive participation in public procurement is not ensured. According to the results of 2019, the share of competitive purchases in their total amount was only 18.18 %. Based on the results of the study, a number of proposals were formulated in order to reduce abuses in the field of public procurement and ensure access for micro, small and medium-sized businesses to productive participation in public procurement, including: the establishment of clear qualification requirements for specialists in the field of public procurement and, possibly, the introduction of a certification system specialists; strengthening control over public procurement by regulatory authorities and civil society; strengthening the responsibility of participants in the public procurement process; ensuring the possibility of a complete electronic document flow in the field of public procurement; use of positive international practices in the field of public procurement. Practical value. The main theoretical provisions of the article can be used in the process of reforming the sphere of public procurement in Ukraine Keywords: public procurement, public procurement reform, electronic bidding system, ProZorro. REFERENCES 1. Belinska, H. V. (2016). Aktualni problemy derzhavnykh zakupivel v Ukraini v umovakh reformuvannia [Actual problems of public procurement in Ukraine in terms of reform]. Visnyk Kremenchutskoho natsionalnoho universytetu imeni Mykhaila Ostrohradskoho – Bulletin of the Mikhail Ostogradsky Kremenchug National University, 5, 125–131. Retrieved from http://nbuv.gov.ua/ UJRN/Vkdpu_2016_5_20. (accessed 07 September 2020) [in Ukrainian]. 2. Etapy provedennia vidkrytykh torhiv [Stages of open bidding]. Retrieved from https://infobox.prozorro.org/articles/proceduravidkriti-torgi. (accessed 07 September 2020) [in Ukrainian]. 3. Zakon Ukrainy “Pro publichni zakupivli”: vid 23.01.2021 № 922-VIII. [Law of Ukraine “On public procurement” from January 23, 2021 № 922-VIII]. Retrieved from https://zakon.rada.gov.ua/laws/show/922-19#Text. (accessed 07 September 2020) [in Ukrainian]. 4. Zakon Ukrainy “Pro elektronnu komertsiiu”: vid 19.04.2020 № 675-VIII [Law of Ukraine “On electronic commerce” from April 19, 2020 № 675-VIII]. Retrieved from https://zakon.rada.gov.ua/laws/show/675-19#Text (accessed 07 September 2020) [in Ukrainian]. 5. Publichnyi modul analityky BI [Public module of ВІ analytics]. Retrieved from https://dozorro.org/tools/public-bi (accessed 07 September 2020) [in Ukrainian]. 6. Sait Systema elektronnykh zakupivel ProZorro [Site ProZorro e-procurement system]. Retrieved from https://prozorro.gov.ua/ua/monitoryng/ (accessed 07 September 2020) [in Ukrainian]. 7. Chernukha, D. V. (2018). Problemy funktsionuvannia ta perspektyvy rozvytku systemy derzhavnykh zakupivel ProZorro [Problems of functioning and prospects of development of the public procurement system ProZorro]. Molodyi vchenyi – Young scientist, 11 (2), 1231–1234. Retrieved from http://nbuv.gov.ua/UJRN/molv_2018_11(2)__169 (accessed 07 September 2020) [in Ukrainian]. Published: 2021-05-27

ОСОБЛИВОСТІ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ В УКРАЇНІ В КОНТЕКСТІ ЄВРОІНТЕГРАЦІЇ

The article examines the features of public procurement in Ukraine and their compliance with EU standards, the factors that affect their effectiveness. The problems of tender purchases that exist in Ukraine during the process are considered. The changes that took place in the implementation of procurement after the introduction in 2020 of a new version of the Law of Ukraine "On Public Procurement" are assessed. A detailed description of Poland's experience in public procurement is provided. The number and types of contracts concluded during procurement are analyzed. The main existing shortcomings in the field of public procurement, ways to solve and improve them are considered. The key EU rules on public procurement to be used in Ukraine have been identified. It was established that it is important to bring the mechanism of public procurement in Ukraine closer to the EU requirements, which will allow our country to raise the issue of joining this organization in the future. The purpose of the article is to analyze the features and problems of public procurement in Ukraine and find ways to overcome them. The main task of reforming the sphere of public finances in our country is to introduce an effective mechanism for the use of public procurement in accordance with the principles and approaches applied by EU countries, which should ensure financial efficiency and transparency of the procurement procedure. Public procurement is one of the tools to regulate supply and demand for specific publications. To increase the transparency and efficiency of use in our country, it is necessary to study the experience of EU member states, especially Poland. Analysis of the experience of public procurement in the EU will be able to identify effective approaches to their implementation in Ukraine, thanks to the main tasks of public procurement reform in our country will introduce an effective system in accordance with the principles and approaches used by EU countries. It is necessary to investigate the change that has taken place in public procurement after the introduction in 2020 of a new version of the Law of Ukraine "On Public Procurement", there are both positive and negative aspects that are due to the existence of corruption schemes in tenders.

СИСТЕМА ПРИНЦИПІВ ЗДІЙСНЕННЯ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ

The article considers the principles of public procurement in Ukraine. The significance of the principles of public procurement for the procurement process and the development of the national economy has been studied. The principles of public procurement established by the Law of Ukraine “On Public Procurement” are analyzed and it is established that the system of legally established principles of public procurement is inconsistent. Scientific approaches to understanding the principles of public procurement are studied. The main principles of public procurement are highlighted, namely the principle of fair competition among participants, which is closely related to the principle of non-discrimination of participants and equal treatment, the principle of maximum economy and efficiency, the principle of openness and transparency at all stages of procurement and the principle of environmental friendliness. It is established that these principles are aimed at regulating the procurement process, and other principles, in particular, the principles of professionalism, responsibility, stimulation of innovation, etc. are derived from the basic principles. The inexpediency of allocating the principle of prevention of corruption and abuse as a principle of public procurement is substantiated. The interconnectedness, interdependence and derivative nature of separate principles of public procurement are established. It is determined that the system of principles of public procurement is quite dynamic and imperfect, and does not correspond to the current state of development of public procurement in Ukraine. The necessity of supplementing the principles of public procurement with the principle of environmental friendliness is substantiated. A low level of practical implementation of the principles of public procurement in the procurement process has been established. It is proposed to enshrine at the legislative level the key principles of procurement, namely the principle of fair competition and equality; the principle of maximum efficiency; the principle of openness and transparency; the principle of environmental friendliness.

Удосконалення роботи управлінських механізмів при здійсненні заходів державного регулювання у сфері публічних закупівель

The article is concerned with considering the current trends in improving the State regulation of the public procurement system in Ukraine. The author defines that one of the key elements of ensuring an adequate level of the State regulation of the public procurement system in our country is the effective organization of the State-based financial control in this sphere. The basis for ensuring the latter is the smooth operation of the relevant State governance mechanisms. The research is aimed at disclosing modern aspects of the State regulation of the public procurement system by implementing the State-based financial control measures, allocating existing problematic issues and developing a model for assessment of efficiency of the measures that will be implemented in the course of its improvement, taking into account the peculiarities of the sphere of public procurement in Ukraine. When writing this article, a direct relationship between the level of efficiency of the State-based financial control in the sphere of public procurement and the level of efficiency of the State regulation of this sphere is determined. It is specified that the key management mechanisms used in the implementation of the State-based financial control in the sphere of public procurement are the organizational, informational and legal ones. Precisely on their condition directly depends the efficiency of the State-based financial control in this sphere. It is determined that each of the above-mentioned the State governance mechanisms has a number of complex, interrelated problematic aspects that impede the maximum level of efficiency of the State-based financial control in the sphere of public procurement. In order to neutralize them, the author proposes to use an automate model for assessing the efficiency of eliminating the shortcomings of the major management mechanisms used in the implementation of the State-based financial control measures in the sphere of public procurement. The presented model allows tracing the impact of relevant measures over time for both the short and long term, is adapted to the economic and socio-political realities of Ukraine, takes into account most of the economic and social risks in the sphere under research.

Державне регулювання публічних закупівель в Україні в умовах реформ та інтеграційних процесів

The article is concerned with topical issues of the State regulation of public procurement in Ukraine in the context of reforms and integration processes. The conceptual principles of regulation of the public procurement system have been formulated, taking into account the requirements and challenges of modern processes of reforms of the national economy and the implementation of the European integration vector. The public procurement system is considered as a new institutional unit in the national economy – the market for goods and services to the State-owned institutions and organizations with the involvement of budgetary funds. The significance of the public procurement system for the country’s economy as an environment for financing and implementing entrepreneurial initiatives aimed at creating high-quality goods and services, which is characterized by volumes equal to 15% of GDP, is substantiated. The article is aimed at defining the theoretical-conceptual and applied principles of the State regulation of the public procurement system in Ukraine in the context of efficient implementation of reform goals and taking into account the impact and challenges from the active participation of the national economy in the international distribution of labor in the course of integration processes with the EU countries. The article defines the key directions of the State policy on the regulation of the public procurement system, which include: stimulating the economic development of the entrepreneurial sector and overall economic growth on the basis of sustainability and balance; support for the production of domestic goods and services with high added value; stimulation of production of goods and services using local resources; stimulating the creation by domestic producers of both goods and services of cooperation associations in order to use the opportunities for the distribution of labor to create more competitive products; supporting the formation of an economic basis for the development of territorial and economic entities in the regions of Ukraine. As for the above defined directions of the State regulation of the public procurement system in Ukraine, appropriate measures have been proposed, the implementation of which is expected to contribute to the strengthening of the national economy and does not contradict the provisions of ratified international agreements.

New Steps Towards Sustainable Public Procurement in Ukraine in the Context of the EU-Ukraine Association Agreement

In the context of implementing the EU-Ukraine Association Agreement in April 2020, a new version of the Law of Ukraine ‘On Public Procurement’ came into effect. It introduces a significant transformation in the public procurement system which could facilitate the strategic use of public procurement to achieve broader societal goals, and provides new opportunities for sustainable public procurement in Ukraine. This paper firstly presents the background of relations between Ukraine and the EU in terms of procurement. Secondly, special consideration is given to changes in the legal framework for technical specifications and contract award criteria as important tools in achieving the relevant sustainable development goals within public procurement. Finally, the paper focuses on the difference in conceptual approaches to the strategic use of public procurement in the EU and Ukraine. Keywords: public procurement, ‘green’ public procurement, socially responsible public procurement, sustainable public procurement, sustainable development, Ukraine, the EU-Ukraine Association Agreement.   This work is licensed under the Creative Commons Attribution − Non-Commercial − No Derivatives 4.0 International License.   Suggested citation: V Malolitneva and R Dzhabrailov, ‘New Steps Towards Sustainable Public Procurement in Ukraine in the Context of the EU-Ukraine Association Agreement’ (2020) 16 CYELP 355.

Current State and Prospects of Legal Support for Public Procurement in Ukraine: Monitoring of Compliance with International Agreements

In the current geopolitical and economic relations between the states, in particular the relations with the participation of Ukraine, the availability of an effective and efficient mechanism for the implementation of government procurement becomes important, which is also guaranteed by international and national legal regulation. The purpose of the study is to characterize the System of national legal regulation of public procurement of Ukraine, to determine the features of the impact of international law on the Ukrainian procurement system, as well as ways to improve it. The results showed that the legal regulation of government procurement on the territory of Ukraine is undergoing significant changes, in connection with the harmonisation of legislation to international (worldwide and regional) standards, this stipulates the adoption of a large number of regulatory acts. The study proved that the majority part of the WTO GPA and Association Agreement provisions in the field of government procurement has already been implemented or is being implemented by Ukraine. Indeed, taking into account the access to the EU market obtained within the GPA framework, Ukraine has already not so many external incentives for the full compliance with the obligations to harmonize the legislation under the Association Agreement than it was expected at its signing. One cannot forget that the enhancement of Ukraine’s positions on the international stage contributes to performing its own international obligations, especially to the countries and international organizations / integrations, partners, donors and creditors.