Entrepreneur supplied low-quality drones to the AFU and misappropriated the difference in cost - he faces 12 years with confiscation

According to the Security Service of Ukraine (SBU), an entrepreneur utilized inexpensive, low-quality components for drones intended for the Armed Forces of Ukraine (AFU), pocketing the savings. He now faces up to 12 years in prison with asset confiscation.

Essentially, the situation involved the theft of state funds via a contract for the procurement of UAVs, which was halted by the SBU and the police. The accused is the director of a private company from the Kyiv region that manufactures drones.

At the beginning of 2024, the entrepreneur won a tender to supply 1,000 FPV drones for the AFU. The procurement was organized by the Netishyn City Council. The total value of the deal was 16.4 million UAH, with one-third of this amount misappropriated by the company’s director.

The contractor installed substandard navigation equipment on the drones, specifically video cameras and video transmitters that did not meet the contract requirements. This allowed for a reduction in production costs, with the difference being embezzled. The entrepreneur illegally "earned" between 4,000 and 7,500 UAH on each drone. An audit and special investigation revealed non-compliance with technical specifications and provided law enforcement with confirmation of illegal activities.

The entrepreneur has been suspected under Part 5 of Article 191 of the Criminal Code of Ukraine for "Misappropriation of property through abuse of office, committed by a group of individuals in collusion during martial law and in especially large amounts."

Source: SBU