Ukraine's Anti-Corruption Bodies Conclude Probe into Defense Ministry Food Embezzlement

Investigation Concluded by Anti-Corruption Agencies

Ukraine's leading anti-corruption bodies, the National Anti-Corruption Bureau (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO), announced on September 19, 2025, the completion of their investigation into alleged large-scale embezzlement within the country's Defense Ministry. The probe focused on irregularities in food procurement for the Armed Forces between 2022 and 2023, a scandal widely dubbed the 'golden eggs' affair.

The investigation's findings indicate that a sophisticated scheme led to the illegal acquisition of over Hr 733 million (approximately $17.7 million or $17.8 million) in profits by supplier companies. The defense now has access to the case materials, a crucial step before the case can be forwarded to court.

Details of the Embezzlement Scheme

The corruption scheme involved manipulating food procurement catalogues. Investigators allege that prices for commonly used products, such as eggs and potatoes, were artificially inflated, while less popular or seasonal items like berries were deliberately underpriced. This manipulation ensured that the overall cost of 'food kits' appeared consistent, masking the significant overpayments for essential goods.

NABU reported that in one contract, nearly half of the total value, approximately Hr 1.2 billion ($29 million), was concentrated in just 40 products with inflated prices. Conversely, 27 artificially low-priced products accounted for a mere 0.14% of the order value and were often unavailable to troops. This fraudulent system allowed two supplier companies, controlled by a single owner, to generate substantial illicit profits between August and December 2022.

Key Figures and Broader Impact

Charges have been brought against several individuals, including a former head of a department within the Defense Ministry, identified in some reports as Bohdan Khmelnytskyi, an owner of supplier companies, reportedly Tetiana Hlyniana, two executives of these companies, and another individual. The actions are being investigated under articles of Ukraine's Criminal Code covering large-scale embezzlement, attempted embezzlement, and money laundering.

The scandal, initially brought to light by media reports in January 2023, had significant repercussions within the Defense Ministry. It led to the resignation of then-Deputy Defense Minister Viacheslav Shapovalov and was cited as a contributing factor to the dismissal of former Defense Minister Oleksii Reznikov in September 2023. Following the initial media revelations, an additional Hr 788 million (approximately $19 million or $19.2 million) in potential embezzlement was prevented as prices for key food products were subsequently lowered. The investigation remains ongoing, with NABU and SAPO continuing efforts to identify any other individuals involved in the scheme.