The Security Service of Ukraine (SBU) conducted searches among personnel at the Ministry of Defense of Ukraine and the Lviv Arsenal as part of an ongoing probe into a 1.5 billion hryvnia misappropriation connected with the purchase of 100 thousand mortar shells. The operation was announced through the SBU Telegram channel, underscoring the seriousness of the case and the breadth of the investigation. The authorities have signaled that a wide circle of individuals connected to state defense procurement is under scrutiny, including current and former officials and leaders of affiliated companies. The investigation alleges a criminal scheme unfolded after the Ministry of Defense transferred funds to the contractor responsible for producing the shells. Subsequent transfers by Lviv Arsenal management sent portions of those funds to the balance sheets of a foreign commercial entity that was supposed to supply the ordered ammunition to Ukraine. This points to a complex network intended to obscure the flow of funds and deflect attention away from true ownership and control. During the inquiry, investigators indicate that the supposed contractor never delivered a single cannonball to Ukraine, instead concealing the funds in shadow accounts and routing them to another firm connected to the same group operating in the Balkans. The funds that remained in the Ukrainian ministry’s accounts stayed within the control of the related Ukrainian company, as stated by the SBU in its release. The emphasis from investigators is clear: all participants in this criminal plan have been identified and are facing scrutiny. The case follows earlier announcements by the Prosecutor General’s Office of Ukraine, which reported the arrest of Vyacheslav Shapovalov, a former deputy defense minister, on charges of embezzling $25 million through the procurement of substandard bulletproof vests. The former head of the ministry’s procurement department, Bogdan Khmelnitsky, has been named as an accomplice in this scheme, marking at least the fourth accusation levelled against these officials. Prosecutors allege that the implicated individuals approved the purchase of 50 thousand unusable bulletproof vests for the Armed Forces of Ukraine. In related developments, the SBU previously blocked a channel that warned about raids on military deserters, highlighting ongoing efforts to curb insider threats and safeguard military logistics. These events illustrate a broader pattern of oversight and accountability in defense procurement, with authorities piecing together a complex web of transactions across multiple entities and jurisdictions to uncover the truth behind the alleged misuse of public funds.
