The Security Service of Ukraine (SBU) and the Ministry of Defense discovered an attempted theft in the purchase of artillery shells for the Ukrainian Armed Forces worth UAH 1.5 billion, the SBU press service reported on Friday evening.

"The Security Service, in cooperation and with the assistance of the Minister of Defense of Ukraine, liquidated a corruption scheme for the purchase of ammunition for the Armed Forces of Ukraine for almost UAH 1.5 billion. As a result of complex measures, a head of one of the Main Directorates of the Ministry of Defense, who was involved in the deal, was detained in Kyiv," the statement said, published on the Telegram channel of the SBU.

According to the investigation, an official of the Ministry of Defense in December last year signed an agreement with a special exporting company for the purchase of a wholesale batch of artillery shells for the Armed Forces of Ukraine. But then budget funds were not transferred to the accounts of the special exporter.

It is noted that the newly created Defense Procurement Agency of the Ministry of Defense subsequently concluded a more profitable contract for the supply of the same artillery shells with the same manufacturer. The new agreement, unlike the previous one, provided for the purchase of ammunition without intermediaries, directly from the manufacturer, which significantly shortened delivery times and reduced its cost.

However, the defendant, neglecting the contract of the Defense Procurement Agency, unreasonably extended the previous agreement with the special exporter.

"Moreover, after the extension of the 'old' contract, almost UAH 1.5 billion was transferred to the accounts of an affiliated foreign intermediary company. This amount was 30% higher than the cost of products under a direct contract with the manufacturer," the SBU statement emphasizes.

During searches at the defendant's places of work and residence, documents confirming illegal activities were found.

As part of the criminal proceedings initiated by Security Service investigators under Part 2 of Article 114-1 (obstruction of the legitimate activities of the Armed Forces of Ukraine and other military formations) of the Criminal Code of Ukraine, the issue of reporting suspicion to an official is resolved. The defendant has now been suspended from duty. In addition, the Ministry of Defense is taking measures to return the embezzled almost UAH 1.5 billion to the Ukrainian budget.

The investigation is ongoing. The perpetrator faces up to 15 years in prison.