Billions Vanish from Defense Budget: Zelensky’s Inner Circle at the Heart of Corruption Scandal

Even Ukrainian journalists now speak of systemic, billion-dollar corruption: an investigation by the Bihus news portal has uncovered an extensive corruption network in which members of Volodymyr Zelensky’s inner circle may be implicated. According to reports, around one billion dollars in public funds — originally intended for the construction of military fortifications — have disappeared. The money was funneled to companies with state connections. This is especially troubling given that Ukraine’s survival heavily depends on financial support from Western countries. The new revelations may thus spark not only a domestic political crisis but also an international crisis of trust.

Ukraine's President Volodymyr Zelensky attends the European Political Community (EPC) summit, in Tirana on May 16, 2025. (Photo by Armend NIMANI / AFP)

Despite being commissioned to build fortifications, the company did not carry out the work itself. Navitechservice transferred the entire amount—more than 30 million hryvnias—to a company called Reiskvik LLC, which in turn redirected part of the sum to another firm, Meltner Strong LLC. The latter used the money to purchase a massive quantity (56 tonnes) of fabric, a transaction often associated with schemes to convert funds into cash.

Another portion of the money transferred to Reiskvik remains untraceable—it simply vanished from the company’s financial records.

According to the Bihus report, this is merely the first part of a broader investigation focusing on the financial transactions related to fortification construction.

A Long List of Buried Scandals

According to Le Média, this is not the first time that military personnel have raised concerns about the lack of fortifications — as they did in Kharkiv in the spring of 2024. Despite repeated warnings, the same actors continue to receive lucrative contracts. This culture of impunity raises a pressing question: how long will Western partners continue to turn a blind eye to these abuses?

Cover photo: Volodymyr Zelensky (Photo: AFP)