Senior Defense Ministry Official in Ukraine Arrested for Alleged $40 Million Embezzlement
Ukraine arrests senior Defense Ministry official for embezzling $40 million from an artillery shells contract, as per Ukrainian Security Service (SBU)
The Ukrainian Security Service (SBU) has detained a high-ranking official from the Defence Ministry for allegedly embezzling 1.5 billion Ukrainian hryvnia ($40 million) in connection with a contract for artillery shells. According to the SBU, the official entered into an agreement with a special export company to buy a large quantity of artillery shells in December last year.
Later, a better supply contract was signed directly with the manufacturer, eliminating intermediaries. This led to a significant reduction in delivery time and product costs, as reported by the SBU. The defense official had initially extended the more expensive original contract and transferred 1.5 billion Ukrainian hryvnia ($40 million) to an affiliated foreign intermediary firm.
The SBU has discovered documents that confirm the illegal activity, and the official could face up to 15 years in prison if convicted. The Ukrainian Ministry of Defense is making efforts to recover the funds.
The Head of the Press and Information Department of the Ukrainian Ministry of Defense, Illarion Pavliuk, stated that the contract involved payment without any deliveries. As a result, lawyers are exploring options to end the contract and recoup the funds. In September, Ukrainian President Volodymyr Zelensky dismissed Defence Minister Oleksii Reznikov, citing the need for "new approaches" in light of several corruption scandals within the Ministry of Defense.
Rustem Umerov, former Ukrainian deputy, was selected as the replacement. The next month, CNN revealed that the US was pushing Ukraine to take stronger action against government corruption. American officials stated that they had sent multiple warnings to Kyiv, indicating that certain types of US economic aid would depend on Ukraine's progress in reforming its institutions.
Zelensky aimed to tackle corruption concerns during his visit to Washington DC, where he met with US Senators earlier this month. The urgency of the issue has increased following the EU's decision to begin membership talks with Ukraine. Reporting contributed by CNN's Natasha Bertrand, Alex Marquardt, Josh Pennington, Jonny Hallam, and Tim Lister.
