SE «Spetstechnoexport»

Monopoly on arms trade and decades of offshore schemes

SE «Spetstechnoexport» is a subsidiary of the state company «Ukroboronprom», which for decades was the exclusive intermediary between the Ukrainian military-industrial complex and foreign buyers, and after February 24, 2022, also became the main importer of weapons for the Armed Forces of Ukraine. In 2016, the Security Service of Ukraine conducted searches at the enterprise in a case concerning the transfer of UAH 198 million to the fictitious company «Carter Group» — the funds were processed as payment for the supply of military goods abroad, which in fact never arrived. In 2019, the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office detained the current and former directors of Spetstechnoexport and three former deputies on suspicion of embezzling $2.225 million: during the execution of a contract to supply military products to India, the enterprise involved an intermediary — a UAE-resident company that provided no real services.

Billions in advances during the height of war — debt of UAH 800 million to the state

In parallel, in 2019 the Security Service of Ukraine opened proceedings concerning the embezzlement of $6.7 million during the contract for the supply of a suspended early warning system. In 2023, NABU informed about suspicions against four more officials in a case regarding the embezzlement of $2.3 million through the payment of agency services to an affiliated offshore company over five months in 2015 — meanwhile, the same company was used to procure goods at prices inflated by 3.5 times. 

The Ministry of Defense filed 28 lawsuits against Ukroboronprom and its subsidiaries totaling UAH 8.57 billion. In October 2024, the Cabinet of Ministers removed the enterprise from the control of the Main Directorate of Intelligence and transferred it to the Ministry of Defense.