Former officials of Ukroboronprom embezzled 107 million hryvnias by signing agreements "on paper," according to the Security Service of Ukraine (SBU).

Former officials of "Ukroboronprom" have been exposed for embezzling over 107 million budget hryvnias. To carry out the deal, they engaged an affiliated commercial entity registered abroad. This was reported by the press service of the SBU.

The counterintelligence of the Security Service and NABU uncovered an illegal scheme that "operated" from 2016 to 2019.

Four former officials from the defense company were involved in the scheme. They misappropriated more than 107 million state hryvnias through the export of military products. To execute the deal, its organizers enlisted an affiliated commercial structure registered overseas.

The suspects signed agreements with the director of this firm. These agreements detailed the conclusion and fulfillment of contracts with exporters of Ukrainian armaments.

"In reality, all the relevant work with foreign customers of military products was carried out by a defense enterprise in Ukraine. Meanwhile, the activities of the affiliated company existed only 'on paper,' and budget funds from our state were supposedly received for the completed mediation," the statement says.

Subsequently, the received funds were funneled into the shadow economy through fictitious companies and distributed among all participants in the deal.

The head of the affiliated company and four ex-officials, who are hiding abroad, have been informally notified of suspicion on several counts of the Criminal Code of Ukraine:

• Part 3 of Article 28, Part 5 of Article 191 (embezzlement, misappropriation of property, or acquisition through abuse of office, committed by an organized group);
• Part 3 of Article 209 (legalization (laundering) of property obtained by criminal means, committed by an organized group);
• Part 3 of Article 28, Part 1 of Article 366 (service forgery, committed by an organized group).

The perpetrators face up to 12 years of imprisonment with confiscation of property.

It is worth noting that earlier, servicemen of the Armed Forces of Ukraine received a defective batch of 120 mm caliber mines, produced by Ukroboronprom. Out of 10 shots, only 1 detonated. The mortarman suspects that the cause is low-quality TNT inside the mines.