The Ministry of Defense purchased plastic canteens for the Armed Forces at three times the market price

The State Agency “State Rear Operator” spent over 54 million hryvnias (more than 1.24 million euros) on plastic canteens, which cost nearly three times more than their US counterparts. Specifically, the prices for Ukrainian canteens were 355 hryvnias (8.15 euros) each, compared to 120 hryvnias for the American model or 72 hryvnias (2.76 euros) for other analogues.

This information was reported by NGL.media.

The Ministry of Defense is purchasing plastic army canteens for the Armed Forces of Ukraine (AFU) at prices at least three times higher than market rates. This year, the state agency “State Rear Operator” (DOT) tried four times to purchase plastic canteens for the AFU. The first two simplified procurement procedures in January and April were canceled. Three different companies participated in these tenders, ready to sell 100,000 canteens for less than 20 million UAH (459,295 euros), but the customer rejected all proposals due to the lack of certificates of compliance with the Ministry of Defense’s technical specifications.

Instead of a third tender, DOT concluded a direct agreement with LLC “Coltrain,” the total cost of which almost doubled to 35.5 million UAH. Previously, this company had not sold canteens to budget customers and did not participate in the canceled procurements.

In response to an NGL.media inquiry, DOT representatives explained this decision by citing the urgent need for canteens and stating that the price offered by “Coltrain” was lower than other companies DOT contacted.

In June, DOT concluded another simplified procedure agreement with LLC “Superform” for 53,000 canteens for nearly 18.8 million UAH. One plastic canteen cost one hryvnia less than in the case of “Coltrain”—354 hryvnias instead of 355 hryvnias.

Both supplier companies are relatively new and immediately began receiving large orders. LLC “Superform,” founded six months ago by 27-year-old Vladyslav Likhosenko from Zaporizhia, has concluded five agreements with the National Guard and the Ministry of Defense worth almost 310 million UAH over the past two months.

Another contractor, LLC “Coltrain,” founded five years ago, began receiving real contracts this year when Yulia Kikhot became the official owner.

The media noted that the Ukrainian market for army canteens is predominantly represented by US Army models, proven effective in many military conflicts. Typically, “American” canteens are sold retail for 120 UAH, but some were found for as low as 72 UAH. However, the Ukrainian Ministry of Defense developed its own canteen standard based on the American model.

“Obvious differences include semi-transparent plastic and the inscription ‘Property of the AFU, not for sale,’ less obvious are a slightly different thread on the cap and a retaining loop,” the report states.

All canteens procured by the Ministry of Defense must meet the approved reference sample and technical requirements, confirmed by a certificate of compliance from the Central Directorate of Material Support Development and Support of the AFU. As a result, Ukrainian canteens, ordered from China, cost at least three times more than NATO standard canteens.

Both companies that DOT contracted order canteens from a single Chinese manufacturer—Taizhou Huangyan Sigg Mold Co., Ltd. The actual profit for suppliers may be significantly higher than declared.

“The main criterion for us was that these canteens meet the technical description, as this allows them to be used for the needs of the AFU, which is one of our priority activities. After conducting a series of tests on canteens from different manufacturers, including Ukrainian ones, we confirmed that only the canteens produced by Taizhou Huangyan Sigg Mold Co., Ltd met the technical description, which led to the purchase of these canteens,” explained Yulia Kikhot, director of LLC “Coltrain.”

The manufacturer’s promotional photo shows the same Ukrainian canteen with the inscription “Property of the AFU, not for sale” at 154 UAH per unit. Similar canteens without inscriptions are sold by the Chinese on Alibaba.com for $2.5 (100 UAH), and US model canteens made of opaque plastic for $0.73 (29 UAH) per unit.

According to NGL.media, intermediaries made a substantial profit from supplying canteens to the Ukrainian army. “Coltrain” earned between 20 to 24 million UAH in net profit, while “Superform” earned up to 11 million UAH. In both cases, the margin is about 200%.

However, a small experiment by NGL.media suggests that the actual income of suppliers could be significantly higher.

The delivery times also raise doubts. According to the initial agreement, LLC “Coltrain” was supposed to deliver the batch of canteens within 19 days, but it would actually take at least four and a half months. Therefore, meeting the delivery deadlines set by the agreement is only possible if the canteens of the required sample are already in stock in Ukraine at the time of contract signing.

Yulia Kikhot, the owner of LLC “Coltrain,” confirmed that this was indeed the case. If the agreement with DOT had fallen through for any reason, the company intended to offer these canteens to other customers.

“If the agreement with DOT had not been concluded, ‘Coltrain’ managers would have contacted and negotiated with the National Guard of Ukraine, units of the Armed Forces of Ukraine, and the State Border Guard Service. Additionally, the company constantly monitors procurements conducted by DOT and other entities for purchasing such goods,” Kikhot claims.

The day after the publication of this investigation, the “State Rear Operator” sent additional explanations to the NGL.media editorial office, admitting that the canteens could have been purchased at significantly lower prices but were hindered by the lack of certificates of compliance from the Main Directorate of Material Support Development and Support of the AFU.