Ukraine uncovers army fuel fraud worth hundreds of thousands

Ukrainian authorities have uncovered two schemes involving the embezzlement of fuel from the army which, according to the Prosecutor General’s Office, caused the state damage of approximately €590,000. The Kyiv Post reported the cases.

The first concerns the Mykolaiv region in the south of the country between 2022 and 2025. According to investigators, military officials falsified documents to obtain surplus fuel intended for military exercises. They then sold the excess to third parties and divided the profits among themselves.

Former commanders of units within the Ministry of Defence and the General Staff, the head of the fuel service and the owner of a petrol station were also allegedly involved in the scheme. According to prosecutors, the group embezzled 133 tonnes of petrol and more than 364 tonnes of diesel fuel worth a total of €430,000. To cover up their activities, the suspects allegedly issued fictitious invoices and reports on the movement of assets.

The second case took place in the Zhytomyr region between 2024 and 2025. Investigators found that a 20 per cent VAT was unlawfully charged on the purchase of heating oil for the army, even though defence purchases were supposed to carry a zero rate. As a result, about €163,000 was transferred unlawfully.

The Prosecutor General’s Office said that since the beginning of the year it has recorded 29 criminal proceedings relating to abuse of power or negligence in defence procurement. There are currently 54 suspects.

(max)