When the country is facing a mortal threat, when every minute and every penny must work for victory, any abuse or theft becomes not just a crime, but a betrayal of national interests. Against the background of the ongoing war, the issue of embezzlement during the construction of fortifications was repeatedly raised and caused a wide public outcry. The public is appalled that at a time when military and civilians are risking their lives for a common future, there are those profiting from defense projects. This undermines trust in the authorities and also endangers the lives of defenders who rely on adequate infrastructure to defend the country. This problem becomes even more painful when it turns out that the funds allocated for the construction of fortifications are spent inefficiently or end up in the pockets of corrupt officials who sit in comfortable offices and live in another dimension.
Fortification collapse
Not only Ukrainians, but also the world community is shocked by the scale of embezzlement of funds allocated for the construction of fortifications in the midst of the war, they are already openly discussed in foreign media. Yes, according to the world-famous publication Financial Times, law enforcement agencies of Ukraine are investigating at least 30 criminal cases related to possible misappropriation of funds in this area. At the same time, the total amount of losses reaches 483 million dollars (20.1 billion hryvnias). These are catastrophic numbers, especially in conditions where the lives of thousands of soldiers and civilians depend on the reliability of fortifications.
However, the problem is not only corruption. The system of organization and control over the construction of fortifications turned out to be so inefficient that the country was on the verge of strategic failure. Due to the exhaustion of the engineering units of the Armed Forces of Ukraine, the responsibility for the construction of fortifications is often transferred to local authorities. The use of infantry brigades as contractors has become a common practice, and quality control of work on the front line of defense is carried out by a small number of engineers.
According to People’s Deputy, member of the special commission of the Verkhovna Rada Dmytro Razumkov, funds for the construction of fortifications are distributed among all regions, and the responsibility for their use is assigned to local administrations. This creates chaos and lack of a single strategy.
“There is no single person responsible for the quality, planning, delivery and control of fortifications,” Razumkov states.
The result of this approach has been significant gaps in defense, which pose a risk to the security of key regions. For example, in the Donetsk region, unprotected areas remain between Velika Novosilka and Kurakhov, as well as between Kurakhov and Pokrovsk. The second line of defense is still under construction here, and the third has not even begun.
Added to this is another problem: most military engineers are reassigned to closing critical gaps in combat positions. This is due to the fact that they are officially considered “rear units”, and instead of professional construction of fortifications, they are used in assault operations.
“If the military engineers were not sent to attack, but were allowed to do their job – dig trenches and build defensive lines, the system would work. And now it either doesn’t work at all or works partially.” – emphasizes the commander of the assault battalion, Stanislav Bunyatov.
The Ukrainian realities of the war are sometimes shocking with their illogicality. The situation, which is perceived here as a given, causes shock and misunderstanding in foreign countries. Sending military engineers on assault operations there is considered one of the absurd practices, because their task is to build defensive fortifications, lay roads, and create infrastructure to support the army. In the US or other NATO countries, a military engineer is an extremely valuable resource. The training of such specialists requires a lot of money, time and effort. For countries where the army operates according to clear rules, such cases look like waste and contempt for human resources. But in Ukraine, these specialists are often used as ordinary infantry. Therefore, it turns out that engineers, who should strengthen the defensive lines, die in battles where their skills are not used. This is not only a human tragedy, but a strategic loss for the army. In addition, the absence of engineers on their main tasks leads to the fact that the fortifications remain incomplete or are carried out with numerous shortcomings. This approach creates additional risks for all those holding the defense.
Theft on fortifications
However, let’s return to embezzlement during the war. Scandals surrounding the construction of fortifications in Ukraine do not stop, and each new case only strengthens mistrust of the authorities. It became especially resonant investigation from the Kharkiv region, where the price of wood intended for defensive fortifications has soared to unprecedented heights. The Security Service of Ukraine began criminal proceedings back in February 2024, having discovered a scheme to inflate prices for wood for the construction of fortifications in the Kharkiv region. Organizers covered up logistics costs, but in reality the prices of materials were inflated several times. For example, wood was bought in the Izyum forest farm for 970 hryvnias per cubic meter, and “supplied” allegedly from the Dnipropetrovsk region for 4,100 hryvnias. This made it possible to earn almost 3,000 hryvnias for each cubic meter.
Since the beginning of 2024, the Kharkiv Regional Military Administration has purchased wood worth about 170 million hryvnias. On average, the price per cubic meter in contracts with private suppliers was more than 5,000 hryvnias. Here are some examples:
- Voskhod Woodworking Enterprise LLC: UAH 8,028/cubic m (3,544.5 cubic meters for UAH 28.5 million).
- LLC “Att-Bud”: 4929 UAH/cubic meter. m (20365.1 cubic meters for 100.4 million UAH).
- “Satisbud” LLC: UAH 5,084/cubic. m (19,273.5 cubic meters for UAH 98 million).
- “Hertz Industry” LLC: UAH 4,813.3/cubic. m (24,123.2 cubic meters for UAH 116.1 million).
- FOP Chaus I.O.: UAH 4381.4/cubic. m (4313.4 cubic meters for UAH 18.9 million).
The investigation established that a number of controlled enterprises were created to implement the scheme, which operated through “shadow” accountants.
On May 1, 2024, the Kharkiv Kyiv District Court granted SBU investigators permission to access documents related to the purchase of wood in the period from October 2023 to May 2024. These are contracts, acts of acceptance and transfer, payment documents and wood quality certificates. It turned out that wood was purchased not only from state forestry farms, but also from private companies. Thus, according to the Kharkiv Anti-Corruption Center, the price of raw pine in local forestry farms was 1,500-1,600 hryvnias per cubic meter, while the average price for the administration was over 5,000 hryvnias.
It turned out that not all supplier companies bought wood from forest farms. In many cases, purchases were made through private companies that artificially inflated prices citing transportation and handling costs. For example, one of the deputy heads of HOVA at the time, Mykhailo Kharnam, explained to journalists that the average price of wood was 5,500 hryvnias per cubic meter, including logistics. However, after the start of the scandal, he resigned, saying he was “tired” of work.
In addition, in the mass media reported about another dubious purchase in the Kharkiv region – wire products for UAH 108 million. How did all these scandals and investigations end? As of December, nothing yet.
A similar scandal broke out in June 2024 in the Mykolaiv region. There, the regional military administration decided to hide the names of the contractors who built the fortifications. Vitaliy Kim, the head of the Mykolaiv Regional State Administration, gave an interview in which questions were raised about billion-dollar purchases made by his administration. He avoided a direct answer to the accusations highlighted in the investigation of the publication “Our Money” regarding inflated prices for the construction of fortifications and water supply in Mykolaiv. Investigators noted that during the year, Kim did not provide documentary evidence of his words. Meanwhile, “Our Money” reports that about 512 million hryvnias were spent on the fortifications, and the excess profit on the water supply project is estimated at 1 billion hryvnias.
Other egregious cases
Such corruption schemes directly affect the country’s defense capability. Fortifications, which should protect the military and civilians, are built with delays or remain unfinished. Meanwhile, funds that could have been spent on real needs end up in the pockets of officials and businessmen connected to the government.
At the same time, the latest investigations revealed the continuation of numerous facts of the purchase of low-quality products at inflated prices in the process of state procurement, which began in 2022. For example, in some cases, the military receives products that do not meet even basic quality standards, or equipment that is not suitable for use in combat conditions. Here is a very recent example – in the fall, the Armed Forces of Ukraine received a low-quality batch of 120-mm mines manufactured at the Ukroboronprom enterprise. In this regard, the SBI opened criminal proceedings, and the Ministry of Defense launched an internal review. However, of course, no one has forgotten that “glorious episode” of 2023, when Oleksiy Reznikov with a serious expression on his face denied the purchase of eggs at 17 hryvnias per piece. Because, according to the minister, “there are no investigations, so there is no problem.” Obviously, the eggs for such a price could not be ordinary, but, say, golden or, at least, with a special military purpose.
Therefore, large-scale embezzlement of state funds is a serious problem that affects not only the construction of fortifications, but also state purchases for the needs of the front. It is about the supply of food, equipment, weapons, ammunition and other materials necessary for the defense of the country. These and many other cases cause deep indignation not only among Ukrainians, who every day make titanic efforts to support the front, but also among the international community. If Ukraine wants to retain the support of its allies, it must respond harshly to such cases, ensure transparency of procurement and punish the guilty. Any abuse in this area calls into question the effectiveness of the country’s governance and may affect future support from allies.
Embezzlement at the state level is not only an economic crime, but also a moral blow to society, the security of the military and the state in general. That is, any scheme that turns a defense resource into a source of enrichment is a betrayal of the country’s interests. At the same time, it is quite clear that scams during the construction of fortifications, the purchase of low-quality products, faulty equipment or unreliable weapons do not happen by chance. If such schemes are implemented, then someone gets the lion’s share of it, having the influence to avoid punishment. And these are far from ordinary citizens.
It is profitable to profit from war – this is why corruption schemes continue to exist, despite all the scandals and investigations. And until strict control over state procurement is established, an objective investigation, inevitable responsibility and public punishment of the guilty will not work, the situation will never change. Without real changes and political will, these crimes cannot be stopped. The only question is how many more lives it will cost the country.
