SBU raids arms exporter in Kyiv

The Security Service of Ukraine on Thursday, December 3, raided the premises of the UkrOboronProm defense giant and Ukrspecexport – an arms exporter which is part of UOP.

"Searches are being carried out, warranted by an investigating judge of the Shevchenkivsky District Court in Kyiv. Searches are related to the performance of foreign economic contracts," the Ukroboronprom press service reported, according to LIGA.net.

It is also noted that Ukroboronprom and Ukrspecexport "provide maximum assistance to law enforcement and all information and documents within the court warrant."

In a separate statement, posted on the company's Facebook page, Ukrspecexport branded the searches as "illegal," adding that their "commercial activity has been completely paralyzed, while critical risks have been created to product shipments to contractors and unforeseen losses to the company and damage to business reputation."

The SBU Security Service said in a statement that the investigation targets Ukrspecexport, Ukroboronprom, and a foreign company.

Security operatives are gathering evidence of the alleged complicity of officials in activities carried out in the interests of one of the South Asian countries "to the detriment of Ukraine's defense capabilities, state, economic and information security."

Read alsoUkroboronprom will no longer exist in 2021 – new chiefThe investigation suspects the arms exporter of involving in its commercial activity abroad an unnecessary foreign intermediary firm, which, detectives allege, has led to the possible loss of Ukraine's arms markets in certain countries in the Asian region, inhibition of existing contracts, as well as creation of obstacles to the conclusion of new deals.

According to preliminary estimates of the investigation, the damage incurred to the state budget could amount to nearly $100 million.

Background

• The raids come on the day the new CEO was appointed to UkrOboronProm. President Volodymyr Zelensky has appointed former Kherson Governor Yuriy Husyev.
• On October 10, 2020, Zelensky dismissed Aivaras Abromaviсius from the post of Ukroboronprom CEO. Ihor Fomenko was appointed the defense giant's acting chief.
• In August, Deputy Prime Minister, Minister for Strategic Industries of Ukraine Oleh Urusky announced Ukroboronprom's transformation and the change of its management.
• Ukraine's state-run Ukroboronprom Concern was founded in 2010 to ensure the effective operation and management of state-run economic entities involved in the development, manufacture, sale, repair, upgrade, and disposal of weapons, military and special equipment, and ammunition. Ukroboronprom incorporates about 140 enterprises of Ukraine's military industrial complex.