Contracts worth UAH 6.95 billion: procurement fraud involving drones for the frontline

The State Bureau of Investigation is probing possible embezzlement of budget funds during the procurement of unmanned aerial vehicles for the Defense Forces.

According to the investigation, in 2025 a private company concluded contracts with “the Defense Procurement Agency” totaling UAH 6.95 billion. Law enforcement believes that the cost of UAVs may have been artificially inflated through unjustified increases in production costs and administrative expenses.

According to the investigation, dubious contracts with non-resident companies and individual entrepreneurs were used to siphon off funds. More than UAH 197 million was transferred through 10 individual entrepreneurs (FOPs), who during interrogations said they had registered as entrepreneurs in exchange for monetary compensation.

Law enforcement also found significant amounts of unreported cash. The investigation is checking for possible tax evasion and legalization of funds obtained by criminal means.

At the same time, UAH 6.95 billion is the total value of the contracts signed, not the determined amount of damage caused to the state. The exact sum of the possible embezzlement was not disclosed in the information released. The investigation continues.

Previously we wrote:

• In Mykolaiv four defense officials will stand trial over 496 tonnes of fuel worth UAH 47 million
• Fed soldiers expired rations: suppliers of dry rations for the Armed Forces are suspected of fraud
• From the front — for sale: Ukraine uncovered a scheme to steal hundreds of military drones worth tens of millions
• Former Ministry of Defense officials are suspected of embezzling UAH 21 million worth of fuel for the Armed Forces
• Millions in pockets instead of drones at the front: in a military unit more than UAH 47 million was stolen on “paper” FPV