Ukraine wasted $770 million on bogus arms deals
Ukraine has wasted $770 million on attempts to buy weapons from dubious sources, the Financial Times reported on Friday.
The paper's investigation, based on court filings, leaked government documents, and interviews with officials, has offered a glimpse into Kiev's frenzy to procure arms following the escalation of the Ukraine conflict in 2022.
Officials often had to pay 'large amounts in advance to little-known companies for materiel that to this day has never arrived,' the paper said. It cited an example of a nondescript gun shop in Arizona, whose owner received an up-front payment of €17.1 million ($19.1 mn) for a deal worth €49 million.
The promised arms, however, never came. Ukraine won an arbitration trial but has yet to recover money, the FT says.
Ukraine has spent between $6 billion and $8 billion annually from its own state budget on arms since the start of hostilities, documents reviewed by the Financial Times show. Of that, $770 million in advance payments went to brokers who failed to deliver.
Several foreign suppliers sold arms at heavily exaggerated prices as global demand soared, with some equipment delivered in unusable condition. Others simply disappeared after receiving payment.
Officials told the newspaper that rampant corruption in the defense ministry played a role in the losses. Authorities are reportedly looking into several cases of suspected collusion and outright embezzlement. According to the FT, in some cases, the investigations are being hindered by slow cooperation from US and EU authorities, who can take up to six months to respond to an assistance request.
However, some Ukrainian officials have defended working with weapons dealers, arguing that it allows them to purchase arms from countries that do not want to be seen as being involved in the conflict.
Ukraine has been rocked by numerous procurement and graft scandals. Earlier this year, Defense Minister Rustem Umerov dismissed the head of the independent Defense Procurement Agency (DPA), which was set up to maximise transparency in purchasing. Umerov accused the DPA of turning weapons procurement into an 'Amazon, where every internet user can see in real time who is buying what and in what quantities.'
The spat sparked 'unease' in the West, with officials voicing concern that it risks paralyzing Ukraine's weapons dealings, according to the Washington Post.
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