Employees of a Ukrainian arms firm allegedly collaborated with defense ministry officials in a scheme to misappropriate nearly $40 million designated for the purchase of 100,000 mortar shells for the conflict with Russia, according to Ukraine’s security service.
This revelation comes as Kyiv intensifies efforts to combat corruption, aiming to expedite its EU and NATO membership, with both organizations insisting on comprehensive anti-graft reforms as a prerequisite for Ukraine’s inclusion.
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The Security Service of Ukraine (SBU) announced on Sunday, January 28, that five individuals have been charged, and one person has been detained while attempting to cross the Ukrainian border.
If convicted, the implicated officials could face up to 12 years in prison.
Ukrainian President Volodymyr Zelenskyy, elected in 2019 on an anti-corruption platform, has sought to address corruption issues long before Russia’s full-scale invasion in February 2022.
Recent dismissals of high-ranking officials, including Ivan Bakanov, the former head of the State Security Service in July 2022, have been presented by Zelensky and his aides as evidence of their commitment to combat corruption.
The SBU’s investigation traces back to August 2022 when officials reportedly signed a contract for artillery shells worth 1.5 billion hryvnias ($39.6 million) with the arms firm Lviv Arsenal.
Following the payment, Lviv Arsenal employees were supposed to transfer the funds to a foreign-registered business, which would then deliver the ammunition to Ukraine.
However, the goods were never delivered, and instead, the funds were 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.