Senior Ukrainian Defense Official Arrested for $40 Million Embezzlement

The official is accused of extending a previous contract and transferring funds to a foreign intermediary company, despite a new deal that reduced costs and delivery time.

• Ukrainian police have arrested a senior Defense Ministry official on suspicions of embezzling nearly $40 million in a fraudulent purchase of artillery shells.
• The official allegedly developed a system to buy artillery shells at inflated prices, and despite a new deal that reduced costs by 30% and shortened delivery time, extended the previous contract and transferred the funds to a foreign intermediary company.
• The Ukrainian Ministry of Defense is working to recover the funds, and the official, if convicted, could face up to 15 years in prison.
• This incident is part of a wider effort by Ukrainian authorities to tackle corruption within the Defense Ministry, which has seen several officials arrested and the Defense Minister replaced in September.
• The corruption scandals have not directly affected foreign military and financial aid to Ukraine, but have fueled arguments of some U.S. lawmakers who demand tight accountability for every delivery.

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