Money laundering of almost 580 million on defense contracts: five scheme participants detained Photos, video 27.04.2026 11:24 Ukrinform The National Police of Ukraine has detained five participants of a criminal organization that, according to investigators, laundered almost UAH 580 million from defense contracts. In total, law enforcement officers have currently notified seven participants of this organization of suspicion.
This was reported by the Department of Strategic Investigations of the National Police of Ukraine, Ukrinform reports.
“Seven participants of the criminal organization have been notified of suspicion, five of whom have been detained in accordance with procedural rules. Preventive measures in the form of detention have been chosen for all suspects. The issue of seizing the suspects’ assets is being resolved, and measures are being taken to compensate for the damages incurred,” the statement reads.
The actions of the figures involved have been qualified, depending on their role and involvement, under several articles of the Criminal Code of Ukraine: Part 1 and 2 of Article 255 (creation and participation in a criminal organization); Part 3 of Article 27, Part 3 of Article 209 (legalization (laundering) of proceeds from crime); Part 5 of Article 27, Part 3 of Article 212 (tax evasion).
Law enforcement officers noted that a private enterprise received over UAH 2.5 billion and was supposed to repair and maintain the military equipment of the Armed Forces of Ukraine.
As stated by the NPU, instead, this enterprise laundered more than half a billion hryvnias through a “conversion center,” transferring funds to fictitious companies through it.
National Police detained participants of a criminal organization / Photo: National Police 1 / 12
Specifically, investigators from the Main Investigative Department and operatives from the Department of Strategic Investigations of the NPU have identified over 40 fictitious companies controlled by the criminal organization’s members, which serve the “conversion center.”
It is noted that among the directors of these firms are citizens of Ukraine who have been living in the so-called DPR since 2014, support the Russian authorities and their aggression against Ukraine, and one of them works as a teacher and received the award “Teacher of Russia.”
“The founders of these firms are also indicated as individuals who are supposedly Polish citizens. However, according to information received from the Republic of Poland, these individuals are fictitious,” the DSR informed.
Police have also established all the details of the hierarchical structure and operation of the “conversion group”—from fictitious suppliers to organizers and intermediaries.
Prosecutor General of Ukraine Ruslan Kravchenko reported on Facebook that the organizers of the “conversion center” created and controlled shell companies to which officials of the defense contract executor transferred funds for non-existent goods and services.
He noted that fictitious suppliers existed only on paper—without people, without production, with nominal directors from temporarily occupied territories and fabricated foreign beneficiaries.
“Through a network of transit firms, funds were laundered and returned to the customers in cash for their illegal enrichment, while the conversion center’s company received a percentage for the ‘services’,” Kravchenko informed.
According to him, one of the “clients” was an enterprise that, during 2023-2025, fulfilled contracts for the repair of military equipment specifically for the Ministry of Defense and the National Guard.
Concurrently, artificial losses were created for the enterprise to avoid paying taxes. “According to expert conclusions, the amount exceeds UAH 100 million,” Kravchenko noted.
Separately, the police stated that in December last year, law enforcement officers notified three participants of the scheme—the head of the conversion center, the co-organizer who coordinated the interaction between the enterprise and the conversion center, and the group’s accountant—of suspicion.
“Shortly after the suspicions were announced, the perpetrators, aiming to exert unlawful influence and intimidate the investigator, planned provocative actions and even sought individuals who could set a car on fire, offering $2,000 for the ‘job’,” the NPU reported.
Operatives of the DSR and investigators of the GSU, continuing to gather evidence of other individuals’ involvement in this crime, obtained incriminating evidence regarding five other key “players” in the scheme.
As a result, law enforcement officers conducted nearly 40 searches and seized financial and economic documentation of enterprises, mobile phones, electronic data storage devices, rough notes, almost UAH 2 million, and vehicles, and seals.
The investigation is ongoing. Law enforcement officers are establishing the full circle of individuals involved in the crime for their prosecution.
“Over half a billion hryvnias from defense contracts were channeled into the shadow economy. This is not a documentation error or a commercial dispute—it is an organized scheme. And those responsible will be held accountable,” the Prosecutor General assured.
The investigative measures were carried out in close cooperation with the State Financial Monitoring Service of Ukraine and the State Tax Service of Ukraine. Procedural guidance in the criminal proceedings is carried out by the Office of the Prosecutor General.
As reported, in mid-December last year, the National Police announced that police officers had uncovered a conversion center through which, according to investigators, over half a billion hryvnias had been “laundered” from defense contracts.
At that time, three participants of the scheme—the head of the conversion center, the co-organizer who coordinated the interaction between the enterprise and the conversion center, and the group’s accountant—were notified of suspicion of legalization of income obtained from crime, in accordance with their respective roles (Article 209 of the Criminal Code of Ukraine).
Suspicion Police Money laundering Office of the Prosecutor General
Джерело: www.ukrinform.ua