Authorities Investigate Alleged Theft of 7 Billion UAH in Drone Procurement

Probe into Suspected Misappropriation of Public Funds

According to Главком: Ukrainian law enforcement is investigating the possible embezzlement of nearly 7 billion UAH tied to state contracts for supplying unmanned aerial vehicles (UAVs) to the country's defense forces. Investigators are examining whether prices for drones were artificially inflated and if shell companies were used to funnel money. Drone manufacturer Vyriy Industries confirmed that searches were conducted on July 7.

According to available information, the company entered into contracts with the state enterprise "Defense Procurement Agency" in 2025 to supply UAVs worth 6.95 billion UAH. The Prosecutor General's Office has not yet disclosed the name of the company under investigation. Authorities are also looking into the possible use of contracts with non-resident firms, resident legal entities, and individual entrepreneurs that show signs of being fictitious.

Interrogations and Search Results

During questioning, ten individuals stated they never actually conducted any business activities and only provided documents in exchange for payment. The total value of suspicious transactions exceeds 197 million UAH. Searches turned up large amounts of cash that had not been recorded in primary financial reports. The pre-trial investigation is being carried out by the State Bureau of Investigation.

“Investigative and procedural actions are ongoing in this criminal case. Necessary expert examinations are being ordered, and financial and business documentation is being analyzed. Based on the results, a decision will be made on whether to notify suspects,” the prosecutor's office stated.

Vyriy Industries also responded to the searches. The company said it is cooperating with authorities and providing all required information within the legal framework. “Anonymous Telegram channels and related resources simultaneously published manipulative and unsubstantiated accusations against the company and its head. Today (July 7), law enforcement agencies are conducting searches at the company,” the manufacturer said in a statement.

The company further stressed that such actions could benefit both the enemy and dishonest market players, aiming to disrupt drone deliveries to Ukraine’s defense forces and slow the growth of the domestic defense industry.

This case underscores the need for transparency and oversight in public procurement, especially during wartime, when every hryvnia must be used effectively to maintain national defense. The ongoing investigation may point to deeper systemic issues in the defense sector that require urgent attention to prevent similar incidents in the future.