Employees from a Ukrainian arms firm conspired with Ministry of Defence officials to embezzle almost $40m earmarked to buy 100,000 mortar shells for the war with Russia, the Security Service of Ukraine (SBU) has reported.
The SBU said late Saturday that five people have been charged, with one person detained while trying to cross the Ukrainian border. If found guilty, they face up to 12 years in prison.
The announcement, which was confirmed by Ukraine’s Ministry of Defence, will have a deep impact on a country beleaguered by Russia’s nearly two-year-old invasion.
The SBU said an investigation had “exposed officials of the Ministry of Defence and managers of arms supplier Lviv Arsenal, who stole nearly 1.5 billion hryvnias [$40m] in the purchase of 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 SBU said.
The deal involved the purchase of 100,000 mortar shells for the military, with a contract secured in August 2022 and payment made in advance.
But no arms were ever provided, the SBU statement said, with some funds then moved to other foreign accounts.
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