The State Bureau of Investigation (SBI) is investigating the potential inflation of drone prices by Vyriy Industries, a major Ukrainian UAV manufacturer that secured government contracts worth nearly 7 billion UAH in 2025. According to investigators, the final price of the drones may have been artificially inflated by groundlessly factoring exaggerated manufacturing and administrative expenses into the prime cost. The news was first reported by hromadske, citing sources close to the matter.
At this stage of the investigation, no official charges or notices of suspicion have been served. Law enforcement authorities are currently working to identify all individuals involved and determine the exact financial damage caused to the state budget.
As part of the criminal proceedings, detectives are look into a potential scheme involving a network of sham sole proprietorships (FOPs) used to siphon off state funds. The SBI claims to have identified over 150 such registered individuals, including students, nail technicians, and retail workers.
During questioning, several of these individuals reportedly admitted they never engaged in actual business activities, having handed over their registration documents to third parties in exchange for cash. Concurrently, financial transactions totaling over 197 million UAH are being audited for potential money laundering and the legalization of illegally obtained funds.
During a press conference, Vyriy Industries co-founder Oleksiy Babenko revealed that law enforcement agencies conducted raids across more than 40 locations, targeting company offices as well as his relatives’ residences. Authorities seized corporate documentation, personal mobile phones, and 32 million UAH in cash from the company’s headquarters. Babenko stated that this cash was strictly designated for employee salaries and noted that the company has already provided the SBI with full financial documentation verifying the origin of the funds.
«Salaries are paid in cash solely for security reasons, ensuring that banks do not hold classified lists of our employees,» Oleksiy Babenko explained.
The company’s leadership firmly rejects the SBI’s allegations regarding the use of fraudulent shell entrepreneurs for money laundering. Babenko emphasized that working with a vast network of sole proprietorships is a standard necessity dictated by the logistics of military tech manufacturing. To build the high-tech drones, the company relies on hundreds of independent subcontractors who manufacture specialized components and individual spare parts.