- Ukrainian arms firm employees and defense ministry officials conspired to embezzle nearly $40 million intended for the purchase of 100,000 mortar shells for the war with Russia.
- The investigation highlights Ukraine’s efforts to address corruption as it seeks membership in the European Union and NATO.
- The funds have been recovered and will be returned to Ukraine’s defense budget.
Additional Coverage:
- Ukraine says corrupt officials stole $40 million meant to buy arms for the war with Russia (newsbreak.com)
Ukraine’s security service has reported that employees from a Ukrainian arms firm conspired with defense ministry officials to embezzle nearly $40 million intended for the purchase of 100,000 mortar shells for the ongoing war with Russia. The SBU revealed that five individuals have been charged, with one person detained while attempting to cross the Ukrainian border. If convicted, they could be sentenced to up to 12 years in prison.
This investigation comes at a time when Kyiv is striving to address corruption in order to expedite its accession to the European Union and NATO. Both organizations have requested comprehensive anti-corruption reforms before Ukraine can become a member. Ukrainian President Volodymyr Zelenskyy campaigned on an anti-corruption platform in 2019, long before Russia launched its full-scale invasion of Ukraine in February 2022. Zelenskyy and his aides have highlighted recent dismissals of high-ranking officials, including the former head of the State Security Service, Ivan Bakanov, in July 2022, as evidence of their commitment to combating graft.
According to security officials, the current investigation traces back to August 2022, when a contract for $39.6 million worth of artillery shells was signed with arms firm Lviv Arsenal. After receiving payment, employees of the company were expected to transfer the funds to a foreign-registered business, which would then deliver the ammunition to Ukraine. However, the shells were never delivered, and instead, the money was sent to various accounts in Ukraine and the Balkans, according to investigators. Ukraine’s prosecutor general has stated that the funds have been recovered and will be returned to the country’s defense budget.