Investigation claims Ukrainian defense concern massively overpaid for Russian components to military hardware

REUTERS Companies that are part of the Ukroboronprom Group from 2015 to 2019 through foreign intermediaries purchased Russian military products, whose cost was overestimated by two to three times. That&#39;s according to a pre-trial investigation conducted by the Main Investigative Department of the Security Service of Ukraine, liga.net reports. The court says special exporters in the interests of Ukrainian defense enterprises concluded import contracts for the supply of components with foreign companies (from UAE, Czech Republic, UK, Cyprus, etc). At the same time, it was Russian military and dual-use products manufactured at sanctioned enterprises that was being supplied to Ukraine in what is commonly known as a "direct supplies evasion scheme". The cost of such supplies was overstated by two to three times, according to the investigation. Read alsoSerhiy Zgurets: Ukraine needs to form a new face of its defense industry, which will be clear to consumers and the Army From February 2018 to June 2019, the SBU says, the subsidiary of Ukrspetsexport SE, Spetstekhnoexport SE, transferred $ 4.1 million to the accounts of Kalipsum Plus SRO (Czech Republic). Also, during 2015-2019, unidentified persons set up embezzlement mechanisms at Ukroboronprom using foreign "intermediary firms" when buying and selling components and spare parts. One such foreign company is Slige S.R.O. (Czech Republic), registered in June 2009. It supplies medical equipment and equipment for power plants. In 2017-2018 alone, SE Vnesheconomservice transferred about $5 million to the bank account of Slige S.R.O. as part foreign economic contracts (at prices overstated by 40%) for the purchase of components for artillery boats. Investigators claim that in a similar way, Slige S.R.O. was used for appropriation of the state enterprise&#39;s funds. Products of the state-owned enterprise were sold by Slige S.R.O. at dumped prices, while components necessary for the Ukrainian enterprise were procured from this company at inflated prices. As reported earlier, in March 2019, investigative journalists with Bihus.info reported that Ukroboronprom had overpaid for Russian spare parts for An-26 military cargo aircraft. The report said that the An-26 had been designed in Ukraine, but some parts were being imported from Russia. On the way to Ukraine, the price of these spare parts would increase significantly. Ukrspetsexport was responsible for the supply of the said spare parts.

Investigation claims Ukrainian defense concern massively overpaid for Russian components to military hardware

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