Ukraine: Widespread Fraud in Weapons Purchases

The Ukrainian Security Service and the Ministry of Defense announced yesterday, Friday, that they discovered a fraudulent scheme involving the purchase of artillery shells, amounting to an embezzlement of approximately 40 million dollars. Corruption in Ukraine has become a more significant issue, particularly with Kyiv's application for EU membership, more than thirty years after the end of Soviet rule. Incidents of corruption within the military, particularly in procurement, have sparked several high-profile scandals.

According to a statement from the Ukrainian Security Service, the scheme focused on contracts for purchasing artillery shells. Recently, the procurement agency established by the Ministry of Defense abandoned a contract for acquiring shells at prices higher than market rates and entered into a new deal that excluded middlemen and significantly reduced the price. However, it was reported that a senior official at the ministry extended the previous contract, and funds amounting to about 1.5 billion hryvnias (40 million dollars) were deposited into accounts owned by intermediary companies. The official, the main suspect in the case, has been removed from their duties, legal action has been taken against them, and efforts are underway to recover the funds. The Ministry of Defense stated that the scheme was uncovered last week, confirming the audit of the illegal activity, with inspections conducted within the ministry and at other sites.

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