Ukraine Lost $1.2 Billion Due to Corruption in Defense Procurement — The New York Times
Confidential audits reviewed by the publication revealed that in 2024 alone, Ukraine lost approximately $1.2 billion due to fraud and negligence in the defense procurement system, with systemic violations including overpayments for weapons, deals made through intermediaries, and awarding contracts to companies that had previously failed to fulfill their obligations, the newspaper reports.
Notable examples include a contract worth hundreds of millions of dollars to supply missiles through a Czech intermediary firm, even though direct cooperation with the manufacturer would have been $150 million cheaper, as well as instances where companies failed to deliver ordered drones but continued to receive new contracts. The Pavlograd Chemical Plant supplied the Ukrainian Armed Forces with 233,000 unusable mortar rounds with defective fuses.
Of the $1.2 billion, approximately $126 million was lost due to overpayments for weapons, while seven of the country’s ten largest military contractors received new orders despite pending criminal cases or delivery failures.
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