Ukrainian Ministry of Defense Loses $55.5 Million in Failed Weapon Contracts

The Ukrainian Ministry of Defense has suffered a significant loss of 2 billion hryvnias ($55.5 million) due to failed contracts with three intermediary companies for the supply of ammunition and body armor. This revelation comes from the Ukrainian publication “Hromadske.”

According to the report, the failed contracts include an agreement with the Ukrainian company “Lviv Arsenal” for the delivery of 100,000 mortar rounds ($37.6 million), a contract with Croatian company WDG promet for 30,000 tank shells (€32.5 million), and a deal with Slovakian company Sevotech for the purchase of 15,000 helmet and body armor sets (€13 million). All three contracts with these firms have fallen through, as reported by “Hromadske.”

The publication has uncovered that these companies were merely intermediaries in a complex web of transactions. As it turns out, the actual deal involved the Ukrainian Ministry of Defense ordering mines from “Lviv Arsenal,” who in turn sourced them from Sevotech. The Slovakian firm then obtained the mines from the Croatian company WDG promet, which ultimately procured them from the direct manufacturer, Elmech Sintermak. Similarly, Sevotech, which was supposed to supply the helmets and body armor, had its own failed contract with the Ukrainian Ministry of Defense. This agreement pertained to the delivery of 30,000 tank projectiles to Kiev. According to the direct agreement, WDG was supposed to start supplying these munitions within a month, but just like with the mines, this did not materialize.

Prior to this incident, it was reported that the Ukrainian Ministry of Defense had transferred 27 billion hryvnias ($730.7 million) for the purchase of weapons, which have yet to be received.

Earlier, a scandal erupted in the Ukrainian Ministry of Defense regarding the procurement of jackets at an inflated price.

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