The SSU, with the support of the Ministry of Defence of Ukraine, has uncovered a scheme of state funds embezzlement in the procurement of ammunition. The crime was documented with the full assistance of the current Minister of Defence.

According to the investigation, former and serving high-ranking officials of the Ministry of Defence of Ukraine and heads of affiliated companies are involved in the fraud.

They attempted to steal almost UAH 1.5 bln (USD 39 mln) from the budget during procurement of 100,000 mortar rounds for the AFU.

In August 2022, the MoD officials concluded a contract for the purchase of a large batch of artillery shells with the Lviv Arsenal arms supplier.

The Ministry of Defence then transferred the full amount specified in the signed document to the company’s accounts.

Upon receipt of the funds, the company’s management transferred part of the money to the account of a foreign commercial entity that was supposed to deliver the ordered ammunition to Ukraine.

However, the company did not send a single projectile to our country and diverted the funds to shadow by transferring them to another affiliated entity in the Balkans.

The rest of the amount from the Defence Ministry remained on the accounts of the Ukrainian company in a Kyiv bank.

The SSU documented the embezzlement scheme and identified all those involved in it.

As a result of the SSU’s operation, the stolen funds have been seized and are to be returned to Ukraine’s budget in the near future.

Based on the evidence collected by the SSU, 5 persons involved have been served notices of suspicion under Article 191.5 of the CCU (misappropriation, embezzlement or seizure of property through abuse of office, committed by an organized group).

The suspects are the former and current heads of the Department of Military and Technical Policy, Development of Armaments and Military Equipment of the Ministry of Defence, the head and commercial director of Lviv Arsenal, as well as their accomplice – a representative of a foreign company.

The SSU apprehended one of them as he tried to leave Ukraine. The detained suspect is in custody. The court is to decide on measures of restraint for the others.

The suspects face up to 12 years in prison with confiscation of property. The criminal proceedings were initiated following an audit by the State Audit Service of Ukraine.

The operation was carried out together with the National Police under the procedural supervision of the Prosecutor General’s Office.