• Ukraine’s military has uncovered corruption in an arms purchase worth approximately $40 million.
• Despite making an upfront payment for 100,000 mortar shells, the supplier did not deliver any arms.
• The embezzled funds have been seized and will be returned to the defense budget.

The military in Ukraine uncovered corruption in an arms purchase worth approximately $40 million (£31 million), according to the country’s security service. The investigation is targeting five senior individuals within the defense ministry and an arms supplier.

In August 2022, defense officials signed a contract for 100,000 mortar shells. Despite making an upfront payment, which included transferring funds abroad, they did not receive any arms. Corruption has posed a significant challenge to Ukraine’s aspirations to join the European Union. The SBU revealed that its investigation exposed officials from the Ministry of Defence and managers at the arms supplier, Lviv Arsenal, who allegedly embezzled nearly 1.5 billion hryvnias in the procurement of shells.

“According to the investigation, former and current high-ranking officials of the Ministry of Defence and heads of affiliated companies are involved in the embezzlement,” it said.

SBU:

Despite Russia launching its full-scale invasion of Ukraine six months prior, the SBU revealed that the military did not dispatch a single artillery shell, even though they had agreed upon a contract for the shells. The SBU has detained one suspect attempting to leave Ukraine, and they are currently in custody. Ukraine’s prosecutor general announced the seizure of the embezzled funds and their return to the defense budget.

Corruption issues have plagued Ukraine for years, with President Volodymyr Zelensky prioritizing the fight against corruption since assuming power in 2019. These recent allegations coincide with resistance from Republicans in the United States against President Joe Biden’s efforts to provide more aid to Ukraine.

In August, President Zelensky took action by dismissing all officials responsible for military recruitment to dismantle a system allowing some individuals to evade conscription. Ukraine’s rank in the 2022 corruption perceptions index by Transparency International was 116th out of 180 countries. Despite this, Ukraine is making progress in anti-corruption efforts and is among the ten countries consistently ascending Transparency International’s rankings, having risen 28 places in a decade.

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