Ukrainian Armored Vehicles LLC, one of the key suppliers of armored vehicles and weapons to the Ministry of Defense of Ukraine, has found itself at the center of a scandal over suspicions of corruption schemes and fictitious contracts. The company supplies Varta and Novator armored vehicles, mortars, chassis for the Bogdan self-propelled guns, and parts for the Neptune missile system, but at the same time encourages illegal bookings by tax evaders in exchange for bribes.
Law enforcement officers detained a company employee while receiving $11,000 for “resolving” the issue of removal from wanted list and booking. The Ministry of Defense is demanding compensation of UAH 424.7 million from the company, but Ukrainian Armored Vehicles is challenging a separate clause of the agreement. The case is being considered by the Kyiv Commercial Court presided over by Judge Serhiy Balats.
Investigations indicate systematic violations: purchases through shell foreign companies, in particular the Romanian Carfil SA, allow for the execution of fictitious contracts, and deliveries of defective weapons, including 120 mm mortar shells without markings and with damaged powder charges, endanger the lives of military personnel.
Since 2014, the company has signed 59 contracts with the Ministry of Defense and affiliated structures for the amount of over UAH 36.2 billion. Such practices cause millions of losses to the state, undermine the trust of international partners and threaten the security of the Ukrainian military. The effectiveness of each contract should work to protect the state, not to enrich individual business structures.
