Ammunition scandal: the State Border Guard Service of Ukraine shows what it bought for UAH 23 billion
29 April 12:46
The State Border Guard Service showed ammunition purchased in Poland for UAH 23 billion with 100% prepayment. The photos were published on the SBGS Facebook page, "Komersant Ukrainian" reports
Border guards emphasized that they had received the ammunition and had already handed it over to Ukrainian defenders.
“We are providing a brief response to the accusations of ‘money laundering’, ‘corruption scheme’ and ‘gaskets’. In response to some critics’ remarks about the UAH 23 billion procurement – “We’ll see if they deliver”, “Show off, don’t hide it” – we would like to inform you that we are continuing our work and are not hiding it, because the equipment purchased by the State Border Guard Service is not only seen by Ukrainian soldiers, but is already being used on the front line. And most importantly, the Russian invaders are feeling them on their own. Look! See?” the post reads.
What you need to know about the scandal around the Defense Procurement Agency, the Government and the State Border Guard Service
Recently, the Defense Procurement Agency of Ukraine has come under criticism for inefficient use of the budget and disruptions in the supply of ammunition to the Armed Forces.
In November 2024, the Cabinet of Ministers unexpectedly transferred 23 billion hryvnias from the Ministry of Defense budget not to the Agency itself, but to the State Border Guard Service to purchase ammunition through the Polish intermediary company PHU Lechmar. This caused a wave of outrage, as the procurement was supposed to be carried out within the Ministry of Defense.
Later, the Ministry of Defense explained that at the time of the transfer, the Defense Procurement Agency had not used more than 45 billion hryvnias that were already at its disposal. This decision, according to the Ministry, was forced.
In an article for Glavkom, political analyst Andriy Myseliuk accused the head of the Agency , Maryna Bezrukova, of delaying processes and misusing the budget. According to him, the Agency concludes contracts with close suppliers, ignoring the needs of the army, prices or delivery times.
The situation with 120 mm mortar shells is particularly critical: although more than 1 million units were planned for 2024, the Armed Forces have actually received only about 35%. Nevertheless, the Agency continued to purchase ammunition from troubled state-owned factories, even though it was behind schedule.
According to observers, the current failures of 2024 no longer bother the head of the Agency – she is allegedly focused on signing long-term contracts “for the future” to ensure a comfortable life after her likely dismissal.
How the SBGS responded to the accusations
On Tuesday, March 25, the State Border Guard Service of Ukraine (SBGS) responded to public accusations and information manipulations around the procurement of ammunition for the Armed Forces of Ukraine.
In a comment to Ukrayinska Pravda, SBGS spokesman Colonel Andriy Demchenko said that the claims of delays in deliveries and debts of UAH 1.7 billion are not related to the UAH 23 billion contracts delegated in November 2024. According to Demchenko, this particular amount of UAH 1.7 billion relates to another contract under which the products were to be delivered by the end of February 2025. Due to the occurrence of force majeure, confirmed by the relevant authorized bodies, the delivery was temporarily delayed. The terms of the contract provide for the possibility of such delays. At the same time, the spokesman emphasized that it was not about ammunition, and even more so about the contracts that were concluded within the amount of UAH 23 billion.
Demchenko emphasized that information about these financial obligations is being manipulatively presented, in particular, on the basis of an official response from the State Tax Service of Ukraine, which was made public by MP Yaroslav Zheleznyak. According to this response, the total receivables under contracts concluded with PHU Lechmar in 2024 amount to UAH 26.5 billion. However, the spokesperson explains that accounts receivable in this case is a technical term that means the period between payment and actual delivery within the terms specified in the contract. Thus, it does not mean a breach of obligations if the terms have not yet expired.
The colonel clarifies: uAH 23 billion of this amount was transferred to the State Border Guard Service at the end of November 2024, and payment under the contracts was made at the end of December 2024. The contracts stipulate that deliveries will continue through 2025, so there are no late payments or overdue debts under these contracts.
Another part of the receivables (i.e., the rest of the UAH 26.5 billion) relates to previous contracts concluded under previously delegated budgets for arms procurement. According to Demchenko, a significant portion of these funds have not yet expired, and therefore no formal breach of obligations has occurred.
In addition to the aforementioned UAH 23 billion, in 2024, the State Border Guard Service also received UAH 5.8 billion and UAH 31.1 billion for defense procurement, which amounts to almost UAH 60 billion in total. Of this amount, as of March 2025, products worth more than UAH 33 billion have already been delivered, meaning that some orders have already been fulfilled. The remaining contracts are under constant control: the progress of fulfillment of obligations by suppliers is monitored, and in case of violations, claims are taken in accordance with the current legislation.
Demchenko emphasized that the SBGS has the necessary certificates of a level 2 budgetary funds manager, as well as experience with ammunition supply contracts. The State Border Guard Service reminds that PHU Lechmar has no outstanding contracts with the border guard agency that are overdue or disrupted.
