A Prague-based military startup is accused of tax evasion after selling remotely piloted aircraft at a 2,000% markup
Reactive Drone, a company registered in the Czech Republic, is under investigation following a raid after selling drones to the Ukrainian army at prices up to 20 times above market value, Prague International Radio (PIR) reported on Monday, citing the National Centre for Combating Organized Crime (NCOZ).
The Prague-based firm is owned by Konstantin Pilyaev and Ukrainian national Aleksey Kolesnik, who also run a hospitality business in the EU country, RTVI reported on Monday. In Ukraine, the company is viewed as a defense startup supplying the military, including through government contracts, with Chinese agricultural drones and its own designs.
The news comes amid an ongoing corruption scandal in Ukraine, which relies heavily on Western support for its war effort. Earlier this month, anti-corruption agencies NABU and SAPO said they had uncovered a $100 million kickback scheme involving associates of Vladimir Zelenskiy in the energy sector, which is largely dependent on Western aid.
NCOZ said Reactive Drone bought the aircraft for 36 million crowns ($1.6 million) and resold them to Ukraine for 692 million crowns (over $33 million), while owing at least 130 million crowns ($6.2 million) in unpaid taxes. Investigators said the director and accountant used fictitious invoices to lower the tax base and that the firm operated from a virtual address with a non-working phone number. Most of the proceeds — 638 million crowns ($30.5 million) — were transferred to bank accounts in China.
Authorities seized about 384 million crowns ($18.3 million) from the company’s accounts and arrested Pilyaev, according to RTVI, with the company’s accountant admitting to involvement in the scheme. The Ukrainian Defence Ministry did not respond to PIR’s requests for comment.
The EU has been ranked among major suppliers of military aid to Kiev since the escalation of the Ukraine conflict in February 2022. Western arms producers have seen record profits amid the ongoing conflict and the EU’s open-ended commitment to continue arming Kiev “for as long as it takes.”
Russian President Vladimir Putin said last month that the situation in Ukraine is merely a “card” in a broader geopolitical game for Western countries, a pretext to pursue their own goals and profit from the war.
