The Ukrainian security service SBU said on Saturday, Jan. 27 that it uncovered a corruption scheme in the purchase of arms in its military forces totaling about $40 million.
The mass fraud was also confirmed by the Ukrainian Defense Ministry and would have a huge resonance in a country that is currently at war with Russia.
It was initially revealed by the New York Times that the Ukrainian government has accused dismissed Defense Minister Oleksii Reznikov of embezzling the money.
Ukraine has been embroiled in eliminating endemic corruption as it pushes its bid to be admitted to the European Union.
While Reznikov was not personally involved in the corruption scandal, several cases of such happened under his watch, including the procurement of food and suitable clothing for servicemen.
SBU: Defense Ministry Colluded with Lviv Arsenal to Purchase Mortar Shells
Reuters reported that the SBU's investigation "exposed officials of the Ministry of Defence and managers of arms supplier Lviv Arsenal, who stole nearly 1.5 billion hryvnias ($3.96 billion) in the purchase of [100,000 mortar] 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," the agency's statement added.
It was further revealed that the contract for the shells was awarded to Lviv Arsenal in August 2022, and a payment was made in advance, with some of the funds transferred abroad. However, no arms were provided.
Five individuals from both the ministry and the arms supplier have been served with "notices of suspicion," with one of them attempting to cross the Ukrainian border.
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