Artem plant UAH 225 million embezzlement case sent to court

The participants of the corruption scheme at one of the largest defense industry enterprises, the state joint-stock holding company Artem, face 7 to 12 years in prison.

NABU and SAPO suspect them of embezzling funds during the purchase of equipment for the serial production of 152/155 mm shell casings. The scheme caused losses of USD 8.3 million to the state.

The criminal group comprised several officials, including the then Deputy Minister of Economic Development and Trade of Ukraine.

As established, in 2017, participants of the scheme secured the signing of a contract for the purchase of equipment for Artem plant with a fictitious company.

As a result, the plant paid "supplier" USD 8.3 million (50% of the contract value). The next day, the funds were transferred to another company.

The plant never received the equipment, while the production of crucial defense products was disrupted.

The suspects' actions fall under*:

• the Deputy Minister of Economic Development and Trade of Ukraine - Part 5 Art. 191 of the Criminal Code of Ukraine;
• the director of the Department of Foreign Economic Activity and Marketing of the State Joint Stock Company "Artem" - Part 5 Art. 27 and Part 5 Art. 191 of the Criminal Code of Ukraine;
• the director of the Ukrainian Scientific, Technical and Implementation Center for Integrated Information Protection - Part 5 Art. 191 of the Criminal Code of Ukraine;
• a foreign citizen, scheme's organizer - Part 3 Art. 27 and Part 5 Art. 191 of the Criminal Code of Ukraine.

*positions as of the crime date

Currently, the organizer of the scheme is hiding abroad, with a special pre-trial investigation against him being in progress.