Ukraine’s Security Service exposes former Deputy Defense Minister on embezzlement of UAH 1 billion

Ukraine's Security Service exposes former Deputy Defense Minister on embezzlement of UAH 1 billion

The Security Service of Ukraine (SSU) exposes former Deputy Minister of Defense of Ukraine Viacheslav Shapovalov on embezzlement of almost UAH 1 billion.

SBU investigators and military counterintelligence officers collected evidence of the criminal activity of former Deputy Minister of Defense of Ukraine Viacheslav Shapovalov, who held this position from 2021 to 2023. He is suspected of embezzling almost UAH 1 billion in public funds.

This was reported by the SSU press service, TSN informs.

According to the case file, in 2022, the official, in collusion with his subordinates, purchased low-quality military uniforms from a private company for almost UAH 1 billion. This is a scandal involving winter uniforms for the Armed Forces of Ukraine: windproof jackets and pants that did not meet the technical specifications. They were not tested in a laboratory, as required by the rules, but only superficially in terms of appearance.

The military of the Armed Forces of Ukraine could not use this form, since it was unsuitable for operation in the cold season in conditions of intense hostilities.

Based on the collected materials, SSU investigators served the former Deputy Minister a notice of suspicion under two articles of the Criminal Code of Ukraine:

  • Part 5 of Article 191 (misappropriation, embezzlement or seizure of property through abuse of office);
  • Art. 28(2) and Art. 114-1(1) (obstructing the lawful activities of the Armed Forces of Ukraine and other military formations).

Under the same articles, Shapovalov's accomplice, the former acting director of the Ministry of Defense's Public Procurement Department, was served a notice of suspicion.

Both offenders are currently in custody. They face up to 12 years in prison with confiscation of property.

Scandal with procurement in the Ministry of Defense

At the end of 2022, documents were leaked online showing that Defense Ministry officials signed a UAH 13.16 billion deal to purchase food for the Armed Forces at two to three times the price of food in Kyiv stores. 

Amid the scandal, Deputy Minister Vyacheslav Shapovalov and Director of the Procurement Department Bohdan Khmelnytsky resigned. On February 1, the SBU served them both with suspicions.

Shapovalov, in particular, is suspected of having signed contracts mainly with foreign suppliers of bulletproof vests and helmets from March to August 2022, but the contracts did not contain clauses on the suppliers' responsibility for product quality. In addition, the investigation noted that one hundred percent payments were made under these contracts. After the products arrived in Ukraine, it turned out that they did not meet Ukrainian quality requirements.

Soon after, in the winter of 2023, the Pecherskyi District Court of Kyiv imposed a preventive measure on Vyacheslav Shapovalov, who had been dismissed from his post. He was ordered to be held in custody for the duration of the investigation with the possibility of being released on bail in the amount of UAH 402 million 600 thousand.

In October, another court hearing was held in Shapovalov's case, but he was still not released from custody, but his bail was reduced to UAH 50 million.

Ukraine Front Lines

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