(Reuters) – Ukraine’s SBU security service revealed on Saturday that it had discovered a corruption scheme in the purchase of arms by the country’s military amounting to around $40 million. The announcement of widespread procurement fraud, verified by Ukraine’s Defence Ministry, will have significant implications in a country facing Russia’s nearly two-year-old invasion. The ongoing battle to eradicate entrenched corruption continues to be a major concern as Ukraine pursues its aspiration to gain membership in the European Union.
The SBU stated that an investigation had exposed officials of the Ministry of Defence and managers of arms supplier Lviv Arsenal, who embezzled nearly 1.5 billion hryvnias in the purchase of shells. The investigation indicated the involvement of former and current high-ranking officials of the Ministry of Defence and heads of affiliated companies in the embezzlement. It was revealed that the embezzlement pertained to the purchase of 100,000 mortar shells for the military.
According to the SBU, a contract for the shells was sealed with Lviv Arsenal in August 2022, six months into the war, and payment was made in advance, with some funds transferred abroad. However, no arms were ever provided, and some funds were subsequently moved to other foreign accounts. The statement mentioned that notices of suspicion had been issued to five individuals – the initial stage in Ukrainian legal proceedings – both in the ministry and the arms supplier. One suspect was detained while attempting to cross the Ukrainian border.
Corruption within the military has been an especially delicate issue in Ukraine as it endeavors to sustain public morale during wartime and present its case for joining the 27-nation EU. Defence Minister Oleksii Reznikov was dismissed last September due to various corruption cases, despite being well-regarded for representing Ukraine in discussions with Western allies. Although he was not personally implicated in corruption, several cases concerning the military arose under his leadership, including one related to supplying troops with food and another involving the procurement of suitable clothing for servicemen. (Reporting by Ron Popeski and Maria Starkova; Editing by Andrea Ricci)
