During the war, Ukraine lost $770 million in advance payments for weapons to foreign intermediaries
Since the start of the full-scale war, Ukraine has transferred $770 million in advance payments to foreign intermediaries for arms and ammunition that were ultimately not delivered. About this it is said in an investigation by the Financial Times.
We are talking about at least three dozen contracts. Among them, special attention was paid to deals with the American companies OTL Imports and Regulus Global. One of the contracts was concluded by the state company “Progres” with the Arizona ammunition store OTL Imports.
The founder of the company, 28-year-old entrepreneur Tanner Cook, was introduced to “Progress” by another businessman who previously helped implement a contract with Iraq in 2009. Cook undertook to supply Serbian-made shells and mortar mines. In November 2022, Ukraine transferred to him an advance in the amount of 17.1 million euros, which was 35% of the contract value. However, the deliveries did not take place.
The contract became the subject of an investigation by NABU, which is trying to find out exactly where the funds were directed. Progress won the arbitration in Vienna: the court ordered OTL to pay 21.3 million euros, including an advance, court costs, interest and penalties. Currently, the Ukrainian side is trying to achieve recognition of this decision on the territory of the United States. Meanwhile, Cook himself was expanding his business, attending international arms exhibitions and, according to his social media activity, leading a luxurious lifestyle.
Another contract was signed with the company Regulus Global, which specializes in the search and purchase of remnants of weapons. In late 2022, Regulus offered Spetstechnoexport the supply of tens of thousands of 155 mm artillery shells, which were to come from a country with close ties to Russia. A contract for the amount of up to $1.7 billion was concluded – the amount depended on the volume of supplies.
“Spetstechnoexport” transferred $162.6 million to the company in the form of advances and deposits, and also made additional payments in the amount of 14 million euros. According to the state company, Regulus violated the terms of the contract and did not return the funds received. Since September 2024, the company has stopped any contact with the Ukrainian side.
Ukrainian officials assume that the advances received were spent by Regulus on the creation of production facilities and acquisition of assets. Now “Spetstechnoexport” is trying to return the funds through the court. The arbitration suit in London seeks $346 million, including advance payments, debts and penalties. The Regulus company categorically denies the accusations and states that it was the Ukrainian side that did not fulfill its contractual obligations and owed about $350 million.
