09.12.2024 Money laundering Tenders

How the Ministry of Defense spends millions on business trips and its own support instead of helping the Armed Forces

Марина Безрукова: что известно о директоре Агентства оборонных закупок

While the Cabinet of Ministers allocates 10 billion hryvnias for weapons, the question of the scandalous 23 billion transferred to a Polish company with full prepayment remains unanswered.

What is known about the scandal?

UAH 23 billion was transferred to a Polish intermediary by the decision of the head of the State Border Guard Service, Serhiy Deynek, and Defense Minister Rustem Umerov. The agreement provided for full prepayment, despite the company’s dubious reputation for disrupting contracts for the Armed Forces. Why weren’t the funds sent directly to the manufacturers? This question remains open.

Instead, the Defense Procurement Agency, which was supposed to sign contracts with a prepayment of no more than 50%, was bypassed. The Ministry of Defense has not yet provided an explanation.

Interestingly, in 2024, the Defense Procurement Agency spent UAH 5.77 million on foreign business trips, the average cost of which was UAH 80 thousand. The problem is that no concrete results were achieved during these trips.

Despite the criticism, in 2025, the Healthcare Ministry plans to increase spending on business trips to UAH 12 million, as evidenced by a tender on the Prozorro platform. Against this backdrop, the military receives only 12% of the necessary ammunition, and losses due to management mistakes by the Defense Production Plant are estimated at UAH 10 billion.

Overpayment on drones

Earlier, we investigated how the Defense Ministry overpaid at least UAH 7 million for the purchase of 700 drones for the Armed Forces. Each drone cost UAH 10-12 thousand more than those purchased by the State Special Communications Service.

After this situation was exposed, the APO promptly concealed all details of the transaction, including the contract price and the names of the suppliers. Now, information about millions of dollars of budget expenditures on dubious deals is no longer available.

UAV supply schemes have reinforced suspicions. For example:

  • Nebo v Piksel LLC is a company that is constantly involved in scandals, but continues to receive budget orders.
  • YASNO 2022 LLC changed its type of activity shortly before participating in public procurement, which also raises questions about its qualifications.

After the study, we sent materials to the competent authorities, which resulted in the Solomianskyi District Prosecutor’s Office registering information in the URPTI under No. 42024102090000165 under Part 4 of Art. 191 of the Criminal Code of Ukraine, and the State Bureau of Investigation in Kyiv No. 62024100110000163 under Part. 5 Art. 191 of the Criminal Code of Ukraine, and separately by the BES and a number of district prosecutors’ offices in Kyiv.

Luxury instead of economy: how does the State Logistics Operator work?

In 2024, the State Logistics Operator under the leadership of Arsen Zhumadilov spent 75 billion hryvnias. Many of these funds were spent not on the needs of the military, but on expensive offices, cars, and their own PR.

The DOT’s fleet was replenished with elite Peugeot 2008 and 3008 series. The office was equipped with premium furniture and appliances. Employees’ salaries reach $2,000, while the military receive minimal support.

Not long ago, the media also began to report that Zhumadilov’s DOT tried to take control of the AOZ and deprive Bezrukova of power, but the attempt failed due to public and international pressure.

What’s next?

Why is Ukraine’s defense budget turning into a source of enrichment? Society is waiting for transparent explanations from the Ministry of Defense, Umerov, and further prosecution of those responsible.

While the country is at war, someone is fighting for millions…

Did you witness a crime?

Let us know about it. We will help protect the violated rights!

Share the post:

Last news

ALL NEWS ALL ARTICLES