Employees of a Ukrainian arms company allegedly collaborated with officials from the defense ministry to misappropriate nearly $40 million allocated for the purchase of 100,000 mortar shells for the conflict with Russia, as reported by Ukraine’s security service.
According to the SBU, five individuals have been charged, with one person detained while attempting to cross the Ukrainian border. If convicted, they could face up to 12 years in prison.
This investigation coincides with Kyiv’s efforts to combat corruption, aiming to expedite its accession to the European Union and NATO. Both blocs have stipulated the need for comprehensive anti-corruption reforms before Ukraine can join them.
President Volodymyr Zelenskyy, elected in 2019 on an anti-corruption platform, and his aides assert that recent dismissals of high-ranking officials, including Ivan Bakanov, the former head of the State Security Service in July 2022, demonstrate their commitment to tackling corruption.
Security officials reveal that the current probe traces back to August 2022, when a contract for artillery shells worth 1.5 billion hryvnias ($39.6 million) was signed with the arms company Lviv Arsenal.
Following the payment, company employees were expected to transfer the funds to a foreign-registered business, responsible for delivering the ammunition to Ukraine.
However, the goods were never delivered, and instead, the money was sent to various accounts in Ukraine and the Balkans, according to investigators. Ukraine’s prosecutor general states that the seized funds will be returned to the country’s defense budget.
