A major corruption and embezzlement scandal has been uncovered in Ukraine’s Ministry of Defense, with more than €18.3 million allegedly funneled into the pockets of officials responsible for food procurement for the military.
This massive sum was spent on overpriced food supplies, as well as lavish purchases, including hotels in Croatia, reports Ukrainian Pravda.
An investigation by Ukraine’s anti-corruption agency revealed that between 2022 and 2023, the Ministry of Defense paid two to three times the store prices for basic food items. For instance, the ministry paid €0.42 for a single egg—far above market prices.
The Ministry had ordered food sets that included 409 items, yet only 10% were deemed necessary or in demand. The majority of the orders consisted of staple items like vegetables, grains, and meat, while other items like spices and gelatin were rarely used. Suppliers exploited the system by inflating the prices of popular products, while lowering the price of less commonly ordered goods, making it appear that the prices were reasonable.
“This allowed suppliers to manipulate prices: inflating the price of popular products and lowering the price of less-used items or those that couldn’t be ordered due to seasonal availability (such as cherries or apricots in winter),” the report explained. As a result, the Ministry paid inflated prices for essential supplies like potatoes, while seasonal fruits were sold at a fraction of their true value.
The funds acquired through this scheme were allegedly used to purchase hotels in Croatia by the owners of two contracting companies and a Ministry employee who overlooked the discrepancies in the contracts.
Initially, the Ministry of Defense dismissed claims of inflated food prices as misleading, with Minister Oleksii Reznikov denying the allegations. However, he later admitted in an interview that he had been “overly emotional” and promised an investigation. The corruption scandal ultimately led to his removal from his position as minister.
Beyond food procurement, further investigations uncovered corruption in military ammunition contracts worth nearly €37.5 million, indicating a widespread issue within the Ministry.
