At least 30 Ukrainian arms purchase contracts since 2022 have failed, according to an investigation by the Financial Times. Several payments worth hundreds of millions of dollars have gone missing, leaving Kiev in a spiral of litigation and corruption suspicions.
Since the Russia-Ukraine conflict entered a comprehensive phase in 2022, Kiev has become one of the world's largest arms importers. However, the rush to purchase defense has cost Ukraine expensive.
According to the Financial Times, Ukraine has transferred about $770 million in advance to international partners to buy weapons and ammunition, but has never received the goods. Many contracts are being investigated or embroiled in international litigation.
The Financial Times pointed out two typical deals that caused Ukraine to lose money and suffer.
The first deal is a contract with US company OTL Imports. Ukrainian special import company Progress has signed a contract with OTL Imports, a small company in Arizona (USA) founded by Tanner Cook, 28.
In November 2022, Ukraine transferred a deposit of 17.1 million euros (equivalent to 35% of the contract value) to buy firecrackers and mortars that Cook said could be taken from the Serbian manufacturer.
But the goods were not delivered, and the incident quickly became the subject of criminal investigation by the anti-corruption agency of Ukraine (NABU).
Progress won the case at the Vientiane Arbitration Court, and was sentenced to receive 21.3 million euros in advance payment, legal fees, interest and fines.
Kiev is currently trying to enforce the ruling in the US.
Meanwhile, according to the press's investigation, Tanner Cook used the contract to expand his business, attend international defense exhibitions, and post a lavish life on social media.
The second deal is another value deal signed with Regulus Global, an arms company founded by former Merrill Lynch employee Will Somerindyke in 2012.
At the end of 2022, Regulus approached Spetstechnoexport - a Ukrainian state-owned defense enterprise - to sell tens of thousands of 155 mm artillery shells. The total contract value can be up to 1.7 billion USD, depending on the actual delivery volume.
Ukraine has paid $162.6 million in advance, along with another amount worth $16 million.
However, Regulus has not delivered the goods, stopped contacting since September 2024, and was accused by Ukraine of using the money to "purchase new assets".
Spetstechnoexport has filed a lawsuit in London, demanding $346 million in damages, including advance payment, principal and fines.
Regulus denied the allegations and said that Ukraine was the violator of the contract, owed $ 350 million.
The war consumption of large scale caused Ukraine to be a country of military spending at the highest GDP ratio in the world. For two consecutive years, Ukraine topped the list of the world's largest weapons importing national import (according to the Sipri Peace Research Institute).
However, while Kiev has mobilized each donation and budget to purchase defense, much of the finances have been "evaporated" through uncontrolled, non-transparent contracts.
