5 Ukrainian officials arrested over theft of $40 million in war funds as Ukraine corruption persists

Five Ukrainian officials were arrested this weekend on accusations of stealing nearly $40 million in funds meant to purchase military equipment for the war against Russia.

Ukraine's security service said members of the defense ministry conspired with members of a Ukrainian arms firm to embezzle the funds, which were meant to purchase 100,000 mortar shells. The allegations come amid division in the U.S. over whether to send more aid to Ukraine, with some critics pointing to Ukraine's longtime struggles with corruption.

The five individuals arrested face up to 12 years in prison if found guilty. Ukraine's prosecutor general says the $39.6 million has since been seized and returned to the defense budget.

Accusations from Ukraine say defense officials organized the payment to Lviv Arsenal, a defense contract firm, to secure the delivery of artillery shells. The ordnance never arrived, however, and the funds were instead transferred to accounts belonging to the defense officials and members of the firm.

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Five Ukrainian officials were arrested this weekend on accusations of stealing nearly $40 million in funds meant to purchase military equipment for the war against Russia. (AP Photo/LIBKOS)

Corruption has been a longstanding issue in Ukraine, with Ukrainian President Volodymyr Zelenskyy winning election on an anti-graft campaign even before Russia's invasion in 2022.

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This fall, however, an advisor to Zelenskyy said the government had suffered "reputational damage" on the world stage for its sluggish efforts to battle corruption.

One aide to Zelensky told Time Magazine in October that "People are stealing like there’s no tomorrow."

Corruption has been a longstanding issue in Ukraine, with Ukrainian President Volodymyr Zelenskyy winning election on an anti-graft campaign even before Russia's invasion in 2022. (Mykola Tys/Global Images Ukraine via Getty Images)

Meanwhile, Ukraine's efforts to push back Russia's invasion have largely stalled. A Ukrainian counteroffensive has achieved a few slim victories, but has failed to achieve a major breakthrough against Russian lines.

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Ukraine's most significant successes relate to its grain exports, which have resumed despite Russian efforts. Ukrainian officials have touted their campaign against Russia's Black Sea Fleet.

Ukraine's most significant successes relate to its grain exports, which have resumed despite Russian efforts. Ukrainian officials have touted their campaign against Russia's Black Sea Fleet. (Russian Defense Ministry Press Service via AP)

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Zelenskyy highlighted the efforts in several speeches during his foreign state visits in the final months of 2023, claiming the Russian fleet "is no longer capable of operating in the western part of the Black Sea and is gradually retreating from Crimea."

The Associated Press contributed to this report.