Employees from a Ukrainian arms firm collaborated with defense ministry officials to embezzle nearly $40 million intended for purchasing 100,000 mortar shells for the war with Russia, according to Ukraine’s security service, Associated Press reports.
The embezzlement scheme involves a contract signed in August 2022 with Lviv Arsenal for artillery shells, which was supposed to deliver the ammunition after receiving payment. However, the goods were never delivered, and the money was redirected to accounts in Ukraine and the Balkans. The seized funds will be returned to Ukraine’s defense budget.
Five individuals have been charged, with one detained while attempting to cross the border. If convicted, they could face up to 12 years in prison. The investigation is part of Ukraine’s efforts to combat corruption and fulfill requirements for EU and NATO membership.
