Ukrainian law enforcement said it uncovered a scheme that illegally sold decommissioned Ukrainian Navy vessels.
According to the Prosecutor General’s Office and Kyiv police, a former defense ministry official and two employees of the state enterprise “Ukrspetstorg,” a company involved in imports and exports, have been formally notified of suspicion.
In Ukrainian law, a notice of suspicion precedes formal charges.
Sources told RBC-Ukraine that the key figure in the case is Ruslan Pokotylо, a former department head at the defense ministry who was responsible for the disposal of military assets.
Investigators found that the ex-official, who had access to classified documentation on the decommissioning of military assets, conspired with representatives of a company that was supposed to dismantle six Navy vessels.
Instead of being scrapped, the ships were sold for scrap metal, generating illicit profits.
To execute the scheme, the group allegedly manipulated official processes. Investigators say they artificially downgraded the vessels’ technical condition, ensured a deliberately low valuation, and organized a “competitive” tender that was formally conducted but predetermined to favor a specific company.
As a result, the selected enterprise received unlawful financial gain, and the Ukrainian state suffered losses exceeding Hr.900,000 ($21,275).
Three individuals have been charged under Articles 364(2) and 28(2) of Ukraine’s Criminal Code, covering abuse of office by a group.
The investigation is ongoing to uncover the full scheme and any additional suspects.
In November, President Volodymyr Zelensky ordered an audit of Ukraine’s defense industry after a broad corruption probe exposed graft in the battered energy sector.
Although the investigation focused on energy, it also uncovered fraud in defense contracts for projects near the grid, which are especially vulnerable to ongoing Russian bombardment.
“A decision has also been prepared regarding a full review of state defense companies and relevant contracts,” Zelensky said on social media.