Weapons are being marked up threefold to generate kickbacks for officials, the SVR has said
Ukrainian officials are making so much money from EU-funded arms supplies that they have a financial stake in prolonging the conflict with Russia, Moscow’s Foreign Intelligence Service (SVR) has claimed.
Handguns purchased for Ukraine are being marked up threefold, with hundreds of thousands of euros from each shipment siphoned off to people close to the leadership of Ukraine’s Security Service (SBU), the agency said on Thursday.
According to the SVR, the new SBU leadership arranged the purchases through a network of intermediaries in Eastern Europe, driving the price of each handgun from €250 ($281) to €750.
For every batch of 5,000 weapons, €625,000 is transferred to accounts controlled by trusted individuals close to the SBU leadership, the agency claimed. Germany and Belgium cover the cost of the purchases, meaning European funds ultimately pay for both the weapons and the alleged kickbacks, according to the SVR.
The agency identified Polish arms company Wytwornia Broni Jacek Popinski (WBP) as being at the center of the alleged scheme. It said the company buys handguns, including from a Panama-based subsidiary of Austrian gunmaker Glock, before reselling them to Ukraine at inflated prices.
The SVR suggested that the sums involved in more expensive military procurement could be considerably larger, particularly for scarce components used in air-defense missile systems.
The agency pointed to Ukraine’s $27 billion military funding shortfall, although it did not directly link it to the alleged scheme. Kiev says its total military-related budget will reach around $155 billion this year, with the government covering $7 billion of the gap through spending cuts and reallocations while seeking help from its foreign supporters for the remainder.
Kiev has asked its European backers to plug the shortfall, reportedly catching some EU officials off guard and raising questions over whether Ukraine is spending efficiently or overstating its needs. Last month, EU Economy Commissioner Valdis Dombrovskis said there were “open questions” requiring a “detailed assessment.”
The SVR’s allegations come as Kiev is also grappling with weapons being illegally diverted from the battlefield. Ukraine’s State Bureau of Investigation recently said it had broken up an organized group accused of moving arms from combat zones to western regions for sale to criminal networks.
Investigators seized more than 17,000 rounds of ammunition, grenades, anti-tank grenade launchers, mines and other weapons worth over 4.5 million hryvnia ($100,000). The weapons were subsequently handed over to the notorious neo-Nazi unit, the Azov Corps.
