Law enforcement officers reported the discovery of a scheme to launder 576 million hryvnias on defense contracts through a "conversion center" and tax evasion.
This was reported by Prosecutor General Ruslan Kravchenko.
According to the investigation, the criminal organization created a "conversion center" to help businesses launder funds and evade taxes.
One of their "clients" was a company that, during 2023-2025, performed contracts for the repair of military equipment for the Ministry of Defense and the National Guard.
Of the UAH 2.5 billion received from the state, officials of the company and businessmen of the conversion center took more than UAH 576 million into the shadows. The money was withdrawn through fictitious companies and converted into cash.
The prosecutorʼs office added that the organizers of the conversion center created and controlled shell companies to which officials of the defense contractor transferred funds for non-existent goods and services.
"Fictitious suppliers existed only on paper — without people, without production, with dummy managers from temporarily occupied territories and fictitious foreign beneficiaries," the Prosecutor General added.
Through a network of transit firms, the funds were laundered and returned to customers in cash for their illegal enrichment, while the conversion center company received interest for “services”. At the same time, an artificial loss was created for the company in order to avoid paying taxes. According to expert opinions, the amount is over UAH 100 million.
Law enforcement officers conducted over 40 searches, seized cash, vehicles, equipment, and "black" accounting records. Seven suspects were informed of the suspicion and are being held without bail.
The investigation is ongoing. Law enforcement officers are establishing the full circle of those involved in the crime.
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