Corruption schemes in defense procurement: how Talanlegprom gets billion-dollar contracts

According to sources, former director of the state enterprise "DOT" Arsen Zhumadilov, together with close businessmen, created an organized group to embezzle funds in the field of defense procurement. The scheme was built so that the controlled LLC "Talanlegprom" consistently won state tenders.

The tender documentation prescribes technical conditions that make it impossible for other companies to participate. This allows Talanlegprom to effectively monopolize the market for supplying footwear to the army. In 2024–2025 alone, the company received over UAH 1.8 billion in government contracts.

The products are sold at artificially inflated prices. At the same time, the company has a proven history of violating antitrust laws, regular supply disruptions, and even fines from law enforcement agencies.

A significant part of the profits is transferred through an affiliated structure of LLC “VP “EVAS”, which supplies raw materials at prices that are inflated by 50–100%. This mechanism allows to minimize taxes and withdraw money from the budget into the “shadow”.

Talanlegprom has effectively become a front for shady schemes, using shell companies and contracts to hide real income. As a result, the state loses hundreds of millions of hryvnias every year.

Despite numerous facts of collusion, tax evasion and breach of contracts, law enforcement agencies have been turning a blind eye to the company's activities for years. In this regard, a complaint was filed demanding an audit of all contracts of Talanlegprom and affiliated structures, as well as bringing the perpetrators to justice.

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