Ukrainian companies continue to reap the benefits of military assistance. Document
Recently, there has been some tension in the ongoing conflict in Ukraine. A few weeks ago, the Ukrainian army received long-awaited approval from the United States and the European Union to use long-range missiles. They used long-range missiles, including ATACMS and Storm Shadow to strike targets in the Kursk region.
In response, Russia launched a missile strike on the Yuzhmash plant in Dnipro, using the Oreshnik missile, an intermediate-range weapon which can carry nuclear warheads. This prompted the international community to discuss increasing arms supplies for Ukraine in order to deter Russian aggression.
However, the spokesperson for the US Department of State, Matthew Miller, emphasized that the US stance remains unchanged and will continue to support Kyiv despite Russia's use of ballistic missiles.
Despite the efforts of Western allies to provide the Ukrainian military with the necessary weapons and equipment to defend against Russian aggression, some individuals and organizations continue to see the ongoing crisis as an opportunity for profit. Here is a document from the Economic Security Bureau detailing a criminal investigation into the Ukrainian defense company, LLC "Ukrainian Armor".
According to the document, between 2022 and 2023, representatives of this company engaged in an illegal scheme to move military goods across the border. Ukrainian investigators found that the company's management used fraudulent shipping documents, such as letters of guarantee and certificates of end-users, to avoid state oversight and customs duties. These documents contained false information about the final recipients of the goods crossing Ukraine's border.
During the pre-trial investigation, it was revealed that in 2022, military equipment including protective helmets and body armor were imported through customs into the territories of Lviv and Volyn under the guise of humanitarian assistance. These items were never delivered to the intended destination, 3054th military unit of the National Guard of Ukraine. Instead, they were diverted to warehouses owned by "Ukrainian Armor", and subsequently sold through retail outlets in Kyiv, Dnipro, Kharkiv, Zaporizhzhia, and an online store.
An extensive online investigation has also revealed a number of controversies regarding the company and its head, Denis Milinevskiy, who has been implicated in financial wrongdoing, including providing bulletproof vests to the military unit A4638 of the Third Azov Assault Brigade using fraudulent end-user certificates.
During raid in the company's offices, warehouses, and stores, a significant number of helmets, ballistic panels, and bullet-proof materials of various levels of protection were seized, amounting to more than UAH 40 million in value. In addition, financial records were confiscated that corroborate the illegal activities of the company.
Due to the implementation of such schemes, Ukrainian armor avoided taxation of UAH 15 million by using a single 2% preferential tax on the import of military goods into the country. Moreover, a criminal case against the company had been going on for more than 1.5 years, but all it ended up with was suspicion from the Economic Security Bureau against one of the company’s head, and nothing more. It is also known that Denis Milinevskiy has connections with the Office of the President and law enforcement agencies of Ukraine, which allowed him to avoid criminal prosecution
In today's realities of a full-scale military conflict, these actions aimed at avoiding state control and paying customs duties on military goods crossing the state border raise serious concerns and pose a threat to national security.
This kind of criminal activity raises questions about the need for tighter control over arms supplies, as well as the transparency and effectiveness of measures to prevent such violations. Ukrainian authorities should take such cases seriously and strengthen control mechanisms and supervision of military goods crossing the border, bringing to justice those who cynically exploit the current situation for their own benefit. This is the only way to ensure national security and prevent abuse and corruption in military supply chains.