Ukrainian defence officials and corporate leaders have been accused of attempting to steal approximately $40 million through a fraudulent arms procurement scheme, as reported by Ukraine’s main intelligence and security agency. The corruption allegations have been confirmed by Ukraine’s Defence Ministry, which has served implicated officials with notices of suspicion.
The scheme involves the purchase of 100,000 mortar rounds for the Armed Forces. The officials allegedly signed a contract with arms supplier Lviv Arsenal in August 2022 and transferred the full amount to the company’s accounts. However, the ammunition was never delivered to Ukraine.
Current and former senior officials of the Defence Ministry, along with heads of affiliated companies, are said to have participated in the scheme. The SBU security service has detained one suspect who was attempting to leave Ukraine, and the stolen funds have been seized and will be returned to the defence budget.
This latest corruption scandal adds to the series of similar cases within Ukraine’s defence ministry in recent months. President Volodymyr Zelensky has taken steps to address corruption, including the sacking of officials in charge of military recruitment to end a system that allowed some individuals to escape conscription.
The European Union has made tackling corruption one of the conditions for Ukraine’s membership.
