Ukrainian law enforcement agencies are investigating a criminal case involving the potential misappropriation of state funds during the procurement of drones for the Armed Forces, totaling nearly 7 billion UAH. According to investigators, a key line of inquiry focuses on the artificial inflation of UAV prices through a network of shell companies. The pre-trial investigation is being spearheaded by the State Bureau of Investigation (SBI).
According to case files, a private company signed state contracts in 2025 with the Ministry of Defense’s «Defense Procurement Agency» to supply various types and modifications of UAVs. The total value of these agreements reached 6.95 billion UAH.
Investigators are currently examining evidence that the drone prices were artificially inflated. The probe targets an allegedly groundless increase in manufacturing costs, administrative expenses, and other overheads that directly impacted the final price of the equipment purchased with taxpayer money.
To create a paper trail for these dubious operations, the organizers reportedly utilized foreign entities, domestic corporations, and individual entrepreneurs (FOPs) showing clear signs of being shell operations. The total volume of these suspicious transactions has already exceeded 197 million UAH.
«During interrogations, ten individuals registered as independent contractors stated that they never actually conducted any business operations, having handed over their identification documents for registration in exchange for financial compensation,» law enforcement officials stated.
Searches conducted at the residences of these registered entrepreneurs—who formally executed multi-million defense contracts—revealed that their actual lifestyle and living conditions showed absolutely no signs of such massive wealth or income.
During searches at the commercial properties of the suspects, law enforcement seized substantial amounts of cash that had not been recorded in primary financial reporting. This points to a potential tax evasion scheme, alongside the funneling of non-cash funds into the accounts of controlled entities for subsequent money laundering.
Active investigative and procedural actions are ongoing. A comprehensive set of forensic examinations has been ordered, and seized financial and business documentation is currently being analyzed. Official charges and notices of suspicion will be served to the involved individuals pending the results of these expert evaluations.
