Over 576 million hryvnias were diverted from defence contracts into "shadow". Scheme has been dismantled. PHOTOS
A criminal organisation that had set up a so-called "money-laundering centre" to assist businesses in laundering funds and evading taxes has been exposed and its activities halted.
This was reported on Telegram by Prosecutor General Ruslan Kravchenko, according to Censor.NET.
Over 576 million hryvnias were moved into "shadow"
It is noted that one of their "clients" was a company that, between 2023 and 2025, carried out contracts to repair military equipment for the Ministry of Defence and the National Guard.
Out of the 2.5 billion hryvnias received from the state, company officials and dealers from the "conversion centre" siphoned off over 576 million hryvnias.
"We are talking about state funds that were supposed to be used for defence. Instead, they were siphoned off through shell companies and converted into cash," explained Kravchenko.
How did the scheme work?
The organisers of the "conversion centre" set up and controlled front companies to which officials from the defence contractor transferred funds for non-existent goods and services.
The fictitious suppliers existed only on paper – with no staff, no production, with frontmen from the temporarily occupied territories and fictitious foreign beneficiaries.
Through a network of transit firms, the funds were ‘laundered’ and returned to the clients in cash for their illegal enrichment, whilst the ‘conversion centre’ company received a percentage for its ‘services’.
At the same time, artificial losses were created for the company to avoid paying taxes. According to expert reports, the total amount exceeds 100 million hryvnias.
Searches and suspicions
- Over 40 searches have been carried out. Cash, vehicles, equipment, seals and ‘black’ accounting records have been seized.
- Seven individuals have been notified of their status as suspects. They are in custody without the right to bail.
- The investigation is ongoing. The full circle of individuals involved in the crime is being established so that they can be brought to justice.
"Over half a billion hryvnias from defence contracts were diverted into 'shadow'. This is not a clerical error or a commercial dispute – it is an organised scheme. And those responsible will be held to account," the Prosecutor General concluded.
