Ukraine paid $770 million to fraudsters for undelivered weapons – FT
Since the beginning of the full-scale Russian invasion, Ukraine has paid about $770 million in advance to foreign suppliers for weapons and ammunition that have never been delivered.
This is reported by the Financial Times, Censor.NET reports.
The publication notes that this is evidenced by the data of the Ministry of Defence of Ukraine, as well as documents that the journalists have seen.
The FT writes that at least 30 contracts are involved. The publication describes two of them.
OTL Imports
For example, in one case, the specialised importer Progress signed a contract with OTL Imports, an American ammunition store based in Arizona.
Its founder is 28-year-old entrepreneur Tanner Cook, who was introduced to Progress by another businessman who had previously helped the state-owned enterprise organise a major deal with Iraq in 2009.
Cook said he could supply shells and mortar shells from a Serbian manufacturer. In November 2022, Ukraine made an advance payment of €17.1 million (35% of the contract amount), but the ammunition was never delivered.
Cook said he could bring the shells and mortar shells from a manufacturer in Serbia. In November 2022, Ukraine paid him €17.1 million in advance (35% of the contract amount), but never received the ammunition.
"The National Anti-Corruption Bureau of Ukraine, the law enforcement agency, confirmed in writing to the Financial Times that it was investigating the OTL case. Ukrainian detectives said they were trying to trace the money paid to OTL. No charges have been brought against Cook or the company," the authors write.
"Progress has since won the arbitration proceedings against OTL in Vienna, but has not yet recovered the money paid to the company. The award provides for the recovery of €21.3 million from the company, which includes the advance payment, as well as legal costs, interest and penalties. Progress is now seeking to have the award recognised in the United States.
At the same time, Cook has expanded his business, travelling to international arms shows and, according to his social media posts, living a luxurious lifestyle.
Regulus Global
At the end of 2022, Oleksiy Petrov, then head of Spetstechnoexport, one of the largest state arms intermediaries in Ukraine, received an offer from the American company Regulus Global that he could not refuse, the article says.
The company offered to sell tens of thousands of 155 mm artillery shells. The ammunition was to come from a manufacturer in a country with close ties to Russia.
Regulus Global signed a contract with Spetstechnoexport worth up to $1.7 billion (the exact amount depended on the volume of supplies).
"Spetstechnoexport states that it subsequently made advance payments and deposits of USD 162.6 million to Regulus to fulfil part of the contracts for the supply of 155 mm shells, as well as other payments of EUR 14 million," the article says.
However, Spetstechnoexport later noted that Regulus had breached the terms of the contract and had not returned the money. Since September 2025, Regulus Global has ceased all contact and has not responded to letters. Officials in Ukraine believe that Regulus spent the prepayment on production facilities and other assets.
"They used the money we sent them... to buy new assets," said Alexey Petrov.
Spetstechnoexport is now trying to recover the money through the courts. The arbitration claim in London is aimed at recovering $346 million from Regulus, including prepayments, as well as outstanding debts and fines.
At the same time, Regulus denies the allegations, claiming that it was Spetstechnoexport that failed to comply with the terms of the contract and owes approximately $350 million.
In September 2024, Regulus wanted to transfer its contract to the Defence Procurement Agency under Maryna Bezrukova, but she blocked the move after Regulus allegedly asked for another advance payment.
Regulus denies this allegation, claiming that it never tried to receive double payment for the same product and that it was simply acting to ensure that there were no disruptions in the supply of ammunition to Ukraine.
Ukrainian law enforcement documents seen by the FT claim that in some cases, senior officials of the Ukrainian Ministry of Defence colluded with foreign intermediaries to use these contracts to embezzle public funds.
