Corruption in Ukroboronprom: criminal group exposed embezzling over UAH 107 million
The National Anti-Corruption Bureau of Ukraine and the Specialized Anti-Corruption Prosecutor’s Office, with operational support from the Security Service of Ukraine, have uncovered an organized criminal group of five. Between 2016 and 2019, they embezzled funds from state enterprises critical to Ukraine’s defense and security, all of which were part of the "Ukroboronprom" concern. The total amount exceeds UAH 107.2 million.
According to the investigation, the corruption scheme involved a state-owned enterprise exporting Ukrainian-made military products, which artificially engaged a non-resident company to provide intermediary services in foreign economic contracts. Meanwhile, the enterprise’s employees did all the work, and no intermediation was required.
Between 2016 and 2019, the state enterprise paid the non-resident company over EUR 3.78 million (equivalent to more than UAH 107.2 million) for allegedly completed services that had never been provided. These funds were funneled through accounts of fictitious companies and subsequently distributed among the criminal group members.
The suspects include former officials of state enterprises and the beneficiary of the private company.
The investigation is ongoing. Other instances of criminal activity are being established.
According to Article 62 of the Constitution of Ukraine, a person is considered not-guilty in the commission of a crime and cannot be subject to criminal punishment until he or she is found guilty by court.