Ukraine has lost almost $ 800 million due to corruption and unsuccessful weapons supply deals - FT

The information presented in the material is based on Ukrainian state and court documents, as well as interviews with officials responsible for purchases, armaments and manufacturers. Hundreds of millions of dollars that Kiev paid to foreign weapons to the supply of important military equipment have been spent in vain in the last three years of the war. In several cases, Kyiv paid large amounts of advance for little -known companies for equipment and ammunition that have not yet been received.

Some officials say that weapons were sold at high prices in unusable condition, since world demand has increased sharply. At least 10 sources related to the military procurement of Ukraine and weapons traders have pointed to a fourfold rise in prices for Soviet ammunition in the first half of 2022.

Currently, Ukraine has paid $ 770 million in advance to foreign weapons for weapons and ammunition, which has not yet been received, according to the data of the Ministry of Defense of Ukraine and the documents available at FT. "This is a significant part of the annual arms budget of Ukraine in the amount of $ 6-8 billion, spent from their own state-owned coffers since the beginning of the invasion of the Russian Federation," the authors say.

Former Ukrainian officials who worked on these agreements were released by the President of Ukraine's office Vladimir Zelensky. Some have been charged with corruption, and dozens of weapons supply are investigated by law enforcement. Some of the agreements are stuck in slow arbitration in London and Geneva.

At the same time, foreign weapons stated that they were victims of domestic quarrels and corruption of Ukrainian officials and government armed intermediaries, which may be one of the reasons for the missing millions. In one of the episodes in April 2022, according to the documents of the Ukrainian Court, the state arms broker "Ukrspecexport" purchased 120 mm mortars in Sudan from sellers who had close ties with the Russian FSB and mercenaries of PEC "Wagner".

The American company OTL Imports from Arizona met with Progres, intermediaries from Ukraine. The director of the company promised to get shells and mortar mines for the Armed Forces from the manufacturer in Serbia and received $ 17. 1 million. Otl never put the shells and did not return the money. The report of the State Bureau of Investigation of Ukraine, which FT was acquainted, testified to the absence of the necessary certification for export and transportation of ammunition in OTL.

Progres representatives refused to answer FT's questions about the reasons for concluding an OTL agreement. The company stated that it has won a lawsuit against the OTL in the Vienna International Arbitration Court for the recovery of € 21. 3 million. The amount covers the advance payment, court costs, interest and penalties. The OTL contract is only one of at least 30 agreements concluded between Ukraine and foreign weapons.

Deputy Minister of Defense Denis Sharapov, who is responsible for foreign contracts until September 2023, spoke about receiving about 25,000 proposals for the sale of weapons for 18 months. There were small or relatively new players in the market. Sharapov compared the tasks of the Ukrainian military at the beginning of the Russian invasion with an attempt to extinguish the burning house "what is".

Another equally interesting example is the sale of artillery ammunition by the American company Regulus Global, which signed a contract with a "special export" of $ 1. 7 billion. It was one of the largest military procurement agreements. Special Technoexport has translated $ 162. 6 million and other payments worth 14 million euros. Subsequently, the company violated the terms of the contract, did not return the money to Kiev and stopped responding to special -export letters.