Ukraine's anti-corruption bodies complete probe into Defense Ministry food procurement scandal
Ukraine's Specialized Anti-Corruption Prosecutor's Office (SAPO) and the National Anti-Corruption Bureau (NABU) said Sept. 19 that they have completed an investigation into alleged large-scale embezzlement at the Defense Ministry.
The case, widely known in Ukraine as the "golden eggs" scandal, erupted in January 2023 after reports alleged the Defense Ministry had been buying basic food items for the Armed Forces at vastly inflated prices.
Prosecutors said the case targets the former head of a Defense Ministry department, the owner and executives of supplier companies, and a private individual accused of stealing state funds during food procurement for Ukraine's Armed Forces in 2022–2023.
According to investigators, the suspects manipulated food catalogues by inflating the prices of popular products and deflating those of seasonal items that could not be ordered under military contracts.
NABU said that in one contract, about half of the total value — some Hr 1.2 billion ($29 million) — was concentrated in just 40 products with artificially inflated prices. At the same time, products with lowered prices, such as cherries and strawberries, accounted for less than 0.2% of the order value and were effectively unavailable to troops.
As a result, investigators allege, two supplier companies illegally received more than Hr 733 million ($17.7 million) between August and December 2022.
The case has been qualified under articles of Ukraine's criminal code covering large-scale embezzlement, attempted embezzlement, and money laundering.
The scandal first broke in January 2023, when the newspaper Dzerkalo Tyzhnia published an investigation alleging the Defense Ministry had contracted eggs at Hr 17 ($0.4) apiece, more than double Kyiv retail prices at the time.
Potatoes, too, were reportedly purchased at nearly three times the market rate. The revelations prompted the resignation of Deputy Defense Minister Viacheslav Shapovalov, who oversaw logistics, and drew intense scrutiny from parliament.
The scandal is also often named one of the main reasons for ex-Defense Minister Oleksii Reznikov's eventual dismissal in September 2023.
SAPO said the defense now has access to the case files, the final step before prosecutors can send the case to court. Under Ukraine's constitution, the defendants are presumed innocent until proven guilty by a court ruling.
