Ukraine has lost 100,000 mortar shells to fraud

RUSSIA / FSU POLITICS - In Brief 28 Jan 2024 by Alex Teddy
On January 27 the SBU (Ukrainian intelligence) said the scheme uncovered was worth USD 40 million. Ministry Defense civil servants and managers of Lviv Arsenal stole the money. Six people have been given notices of suspicion and another suspect was arrested trying to leave the country. The contract was agreed with Lviv Arsenal in 2022. Money was paid in advance, and the factory then expatriated the money. No shells were ever provided.  Ukraine suffers very widespread corruption. Putin even cited corruption as a reason for the war. The Ukrainian government has highlighted success in tackling this issue, but it remains a major stumbling block to ever joining the EU. Ukraine has sometimes tried to play down corruption in defense procurement because one of the arguments in the US against providing more funds to Ukraine is that the money will just be stolen anyway.  There have been scandals in which companies contract to produce army rations have not done so, and another scandal in which far more military uniforms were ordered than were needed. 

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