Scheme of laundering UAH 570 million from defense contracts uncovered: details of the investigation

According to glavcom.ua: The Office of the Prosecutor General has revealed a complex scheme of legalizing funds obtained in the defense sector, the total amount of which exceeds UAH 570 million. During 2023-2024, officials of a defense enterprise collaborated with a 'conversion center' to launder budgetary funds paid for defense orders.

According to the report, state customers transferred over UAH 2.5 billion to the enterprise for the repair of military equipment. Part of this money was funneled to the accounts of fictitious companies through intermediaries who received a commission for 'services' in legalizing the funds.

The investigation showed that the company leaders could not effectively manage the companies due to their residence in occupied territories. Over UAH 576 million in financial transactions have signs of money laundering obtained by criminal means.

Suspicion submission and further steps

Two organizers of the conversion center and a shadow accountant were charged with legalizing income obtained illegally. An investigation is also underway into possible violations in the field of defense procurement.

It should be noted that the Lviv regional prosecutor's office previously uncovered a scheme of extortion from subordinates organized by leaders of central and regional government bodies.

Further information: The Office of the Prosecutor General continues to actively fight against corruption and financial crimes in the defense sector, as well as in other areas of Ukrainian society. The identified schemes of money legalization highlight the need to strengthen anti-corruption measures and improve control over the management of state finances.