NYT: Ukraine lost $1.2 billion to military procurement fraud, waste in 2024

Ineffective management and corruption in Ukraine’s military procurement sector have resulted in massive financial losses, according to government audits obtained by The New York Times (NYT).

In 2024 alone, Ukraine lost around $1.2 billion to fraud and waste. Seven of the country’s 10 largest military contractors received new orders despite facing criminal investigations into alleged fraud, failing to fulfill previous contracts, or having executives arrested on corruption charges.

Warning signs have repeatedly been overlooked, while inflated prices and failure to meet contractual obligations have rarely resulted in consequences.

In some cases, companies secured contracts despite lacking the capacity or licenses required to supply or deliver weapons. Auditors identified 18 firms that signed new deals despite failing to fulfill previous agreements, with six of them having failed to complete a single contract.

Analysts concluded that the military is not receiving what it needs, while the state budget is being drained by undelivered supplies and overpayments. Around $126 million was lost because lower bids were disregarded and weapons were purchased at inflated prices. Some contracts were awarded without a legal basis.

By Jeyhun Aghazada