Ukraine busts crime ring that laundered $13 million in defense sector, authorities say
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Seven people were charged over a criminal scheme in the defense sector that helped launder at least Hr 576 million ($13.1 million), the Prosecutor General's Office said on April 27.
An unnamed private company that was awarded a Hr 2.5 billion ($57 million) contract by the state to repair and maintain military equipment siphoned off an equivalent of about $13 million through shell companies, according to the police.
"On paper, the money was used to purchase spare parts and other materials; in reality, it went directly into the pockets of the scheme's organizers," the police said. The state also lost about Hr 100 million ($2.3 million) in unpaid taxes.
Suspected masterminds behind the scheme set up a so-called "conversion center" that helped companies launder money and evade taxes through a network of over 40 shell companies.
The company mentioned in the investigation was identified as one of the center's "clients."
Law enforcement authorities carried out about 40 searches in Dnipropetrovsk Oblast, seizing evidence and Hr 2 million ($45,000) in cash. Five of the suspects were taken into custody and await trial, the police said.
The shell companies were reportedly headed by individuals living in Russian-occupied areas of Donetsk Oblast since 2014 and supporting Russia's aggression against Ukraine, as well as by a teacher who had been awarded the title "Teacher of Russia."
Among the listed founders of these companies were individuals identified as Polish citizens; however, Polish authorities informed Kyiv that no such persons exist.
Three alleged ringleaders of the criminal network, including the head of the "conversion center," were already charged in December 2025.
In response, the suspects reportedly attempted to pressure the investigator, even offering money to have the investigator's car set on fire.
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Jimmy Rushton
The Kyiv Independent news desk
Lucy Pakhnyuk
