Deputy Defense Minister Mstyslav Banik and YouControl Deputy Director for Legal Affairs Danylo Hloba signed a respective memorandum of cooperation, Ukrinform reports, citing the ministry.

"Every risk that is not identified in time can potentially lead to delays in deliveries or poor-quality weapons and logistical supplies for our troops. That is why screening potential suppliers must be as fast and effective as possible. Access to the YouControl analytical system will make it possible to identify 'red flags' more quickly, understand what to pay attention to and what requires more thorough verification. This will make defense procurement for the Ukrainian military increasingly transparent and effective," Banik said.

For his part, Hloba expressed confidence that modern analytical tools and high-quality due diligence of contractors can make defense procurement more efficient and secure.

The ministry explained how it will use the YouControl analytical system. A supplier seeking to enter into a government contract will provide a specified set of company data in a designated format. A registrar, meaning a Defense Ministry representative, will then verify the accuracy of the information and assess potential risks.

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The Defense Ministry will check the following information about potential suppliers: whether they appear on sanctions lists; their beneficial owners; corporate ties to Russia (in the future, this will also apply to non-resident companies); outstanding debts; criminal proceedings, including corruption-related cases; and security risks.

The ministry stressed that access to the YouControl analytical system will allow preliminary checks to be conducted through an electronic portal, with data verified across all relevant sources, rather than searched for manually in dozens of different state registers.

In addition, the Defense Ministry will consult with YouControl as it develops its own capabilities to create relevant databases, integrate registers and more.

One of the key areas of cooperation will be the implementation of the Trust Index, a tool for rapid preliminary analysis of contractors. It allows users to quickly create an initial risk profile of a contractor, identify potential due diligence factors and prepare more effectively for a subsequent comprehensive review.

The rapid analysis does not replace a full contractor due diligence process but serves as its initial stage, helping to organize information from open sources and improve the efficiency of the assessment process.

The Defense Ministry noted that data obtained through YouControl will be used solely for advisory purposes and will not serve as the basis for legal decisions. If the system flags certain risks, the registrar must verify them directly in the relevant register before making a decision.

YouControl is organizing special training sessions for Defense Ministry specialists on how to use the system.

Photo: Ukrainian Defense Ministry