Searches at Vyriy: More than 150 individual entrepreneurs may have been used in scheme involving drone procurement worth UAH 7 billion – SBI
Employees of the State Bureau of Investigation are conducting investigative actions in a criminal proceeding concerning the possible artificial inflation of the cost of drones purchased under state contracts in 2025 for almost UAH 7 billion.
This was reported by the State Bureau of Investigation, Censor.NET reports.
SBI employees are conducting a set of investigative actions as part of a criminal proceeding concerning the possible artificial inflation of the cost of unmanned aerial vehicles. In 2025, the drones were supplied under state contracts to one of the state customers in the defence sector.
The pre-trial investigation is being conducted on the grounds of criminal offences under Part 5 of Article 191, Part 3 of Article 209, and Part 2 of Article 205-1 of the Criminal Code of Ukraine.
Product costs were artificially inflated
According to preliminary data, in 2025, a private company supplied unmanned aerial vehicles of various types and modifications under state contracts worth a total of almost UAH 7 billion.
The investigation is checking the version that company officials may have artificially inflated the cost of the products by groundlessly including inflated production, administrative, and other expenses in their cost price, which affected the final price of the drones purchased with budget funds.
In addition, information is being checked regarding the use of an extensive network of individual entrepreneurs and business entities showing signs of fictitious activity to document financial and business transactions, artificially generate the company’s expenses, and possibly withdraw funds.
More than 150 individual entrepreneurs who may have been used in the scheme identified
Based on materials from the State Financial Monitoring Service of Ukraine, financial transactions worth a total of more than UAH 197 million have been identified and are being checked for possible legalization of funds obtained by criminal means.
As part of the investigation, more than 150 individual entrepreneurs who may have been used in the scheme have already been identified, including manicurists, students, shop employees, and others.
Some of them have already been questioned as witnesses. According to them, they did not actually carry out business activities, and provided documents for state registration to third parties in exchange for monetary compensation.
The necessary investigative and procedural actions are currently ongoing to establish all the circumstances of the possible criminal offences, the circle of persons involved, and the amount of damage caused to the state.
Procedural guidance is being provided by the Prosecutor General’s Office.
The company’s name is not being disclosed, but the circumstances of the case indicate that it concerns Vyriy Industries, whose owner, Oleksii Babenko, was searched.
Background
- On the morning of July 7, SBI investigators conducted searches at the drone manufacturer Vyriy and are checking the possible artificial inflation of the cost of unmanned aerial vehicles. The company said it was cooperating with the investigation and continuing to operate as usual.
- The National Association of Defence Industries of Ukraine (NAUDI) expressed concern over the searches at Vyriy, one of Ukraine’s largest manufacturers of FPV drones and components for them. The association called on law enforcement officers to ensure that the investigative actions are carried out without blocking the company’s work or disrupting contracts for the Defence Forces.
