Ukraine raids leading drone maker as investigators probe multi-billion contracts

Ukraine's State Bureau of Investigation (SBI) has conducted searches at drone manufacturer Vyriy Industries as part of an investigation into the alleged artificial inflation of drone prices under state procurement contracts.

According to the SBI, investigators are examining whether the cost of drones supplied to the Ukrainian government in 2025 under multi-billion contracts was deliberately inflated.

“SBI investigators are checking for possible artificial inflation of the cost of drones that were supplied to the state in 2025 under multi-billion contracts. According to the preliminary version of the investigation, the price of the drones could have been increased due to the unjustified inclusion of inflated production, administrative and other costs in the cost price. It was these circumstances... that became the basis for conducting investigative actions,” the bureau's press service said.

Ahead of the searches, Vyriy Industries said it had become the target of what it described as a coordinated information campaign directed against the company and its chief executive, Oleksiy Babenko.

According to the company, anonymous Telegram channels and affiliated online platforms simultaneously published what it called manipulative and unsubstantiated allegations against both the company and its management.

“Today, law enforcement agencies are conducting searches at the company. Vyriy Industries cooperates with the authorized bodies and provides all necessary information within the framework of current legislation,” the company said in a statement.

Vyriy Industries added that it would provide more detailed information at a later stage.

Separately, Ukrainian authorities recently announced the detention of an alleged Russian "mole" at a leading academy of the Ministry of Defense of Ukraine, accusing the suspect of attempting to pass information about Ukraine's latest drone developments to Russia.

By Vafa Guliyeva