Ukraine’s National Anti-Corruption Bureau (NABU) and Specialized Anti-Corruption Prosecutor’s Office (SAPO) have uncovered a large-scale corruption scheme involving a sitting member of parliament, top officials from local military-civil administrations, and officers of the National Guard. The investigation concerns embezzlement of defense funds through inflated procurement contracts for drones (UAVs) and electronic warfare systems (EW).
According to investigators, the organized group included: a current MP of the 9th convocation, the former head of the Luhansk Regional Military Administration (now leading a district-level administration), the head of a city military administration, a commander of a National Guard unit, the beneficiary of a private company, and its CEO.
According to media reports, among those exposed by NABU and SAPO for large-scale corruption are Oleksiy Kuznetsov, a member of parliament from the Servant of the People party, Serhiy Haidai, head of the Mukachevo District State Administration and former head of the Luhansk Regional State Administration, and Andriy Yurchenko, head of the Rubizhne City Council in Luhansk Oblast.
Between 2024 and 2025, the group reportedly set up a scheme to systematically misappropriate funds allocated by local governments for defense needs, and to receive and offer large-scale bribes.
One part of the scheme involved signing a state contract for electronic warfare systems at knowingly inflated prices — 30% of the total contract value was paid back to the conspirators as kickbacks. A similar mechanism was used in a contract for FPV drones: a military unit signed a nearly UAH 10 million (approx. USD 250,000) deal with a supplier, which delivered goods overpriced by approximately USD 80,000. After fulfilling the contract, company executives allegedly paid part of the proceeds to the corrupt officials.
Four individuals have been detained under Article 208 of Ukraine’s Criminal Procedure Code. The preliminary legal classification of the offenses includes Part 5 of Article 191 (misappropriation of state property) and Part 4 of Article 368 (bribery) of Ukraine’s Criminal Code. Prosecutors are now considering official notices of suspicion.
NABU and SAPO emphasized that all actions are carried out strictly within the framework of Ukrainian law, with the goal of ensuring swift and fair judicial proceedings. The success of this operation was made possible by Law No. 4560-IX, recently signed by President Volodymyr Zelenskiy, which removed several barriers to the effective functioning of anti-corruption bodies.
Officials stressed that this case exemplifies how institutional support and coordination at the highest level can lead to tangible anti-corruption results. Ukraine’s anti-corruption infrastructure continues to function independently and assertively.
Note: According to Article 62 of the Constitution of Ukraine, a person is presumed innocent until proven guilty by a court of law.