Drones for the Armed Forces disappeared into the abyss: how corruption in the Ministry of Defense undermines the defense capability of Ukraine

Over the past three years, the Ukrainian Ministry of Defense has become the center of a large-scale corruption scandal. The investigation revealed that officials entered into fictitious contracts with controlled companies for the purchase of drones, inflating their cost by three times. As a result of such manipulations, the state budget lost more than 215 million hryvnias , and the Ukrainian army did not receive the necessary equipment for combat operations.

In addition:
▫️Products were supplied without appropriate licenses and did not meet technical requirements.
▫️Companies avoided paying taxes due to exemption from customs payments and VAT.
▫️Criminally obtained funds were transferred abroad through affiliated bank accounts.

Key players in this scheme are a list of companies, including:

▪️ "Fighting birds of Ukraine" LLC (EDRPOU 44774645) - participation in schemes to embezzle funds through the purchase of UAVs.

The company is a significant player in the drone market, the main product of which is the VALK-1 Galka complex, known as Valkyrie.

Cooperates with such well-known partners as Roshen, UkrEnergo, Naftogaz and the Serhiy Prytula Foundation.

Information about the owners of this company is not provided, but its activities significantly increased during the war.

▪️Module 5 LLC (YEDRPOU 39340926) – supply of low-quality products at inflated prices.

The owner is Andriy Zbroy, who also owns ODESD2 design bureau, Zbroy films production and Zbroy drones company.

The company currently supplies military equipment, including drones, but specific details of its military contracts remain unknown.

▪️ "Flash Tech" LLC (EDRPOU 45043589) - overpricing of drones.
▪️ "VNA Trade" LLC (EDRPOU 38682913) - manipulation of tenders and tax evasion.

All agreements provided for a 70% advance payment for products that did not meet the declared characteristics, which created a threat to the lives of the military and harmed the country's defense capabilities. After all, the company received funds, but forgot to provide services in return.

All the mentioned companies appear in the investigation related to
the importation of drones and their further sale without payment of taxes and
reflection in accounting reports.

It seems that the Ministry of Defense uses public procurement for the army as a platform for its own profit and enrichment, where the lives of the soldiers of the Armed Forces do not mean anything at all.

NGO "NON-STOP" calls on law enforcement agencies to start an investigation of the mentioned facts as soon as possible, to seize the accounts of the following companies: LLC "Fighting Birds of Ukraine", LLC "Modul 5", LLC "Flash Tech", LLC "VNA Trade", to conduct an inspection of banks, which contributed to the withdrawal of funds.

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