Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Headlines

Ukraine anti-graft agency investigates defence minister amid procurement dispute

Posted By Global Banking and Finance Review

Posted on January 29, 2025

Ukraine anti-graft agency investigates defence minister amid procurement dispute

By Dan Peleschuk

KYIV (Reuters) - Ukrainian investigators have opened a criminal case involving Defence Minister Rustem Umerov, a move likely to deepen a standoff in his ministry over arms procurement that could strain Kyiv's ties with important Western allies.

The National Anti-Corruption Bureau of Ukraine (NABU) told Reuters in a statement that its investigation, requested by a corruption watchdog, would examine whether there had been an abuse of authority by Umerov but gave few other details.

The watchdog, the Anti-Corruption Action Centre, has accused Umerov of acting illegally by sidelining the head of the Defence Procurement Agency, whose contract Umerov is refusing to renew after criticising the agency's work.

Umerov said last week that the DPA, which coordinates weapons purchases, had failed to deliver results for Ukrainian forces, comments that brought ministry infighting over arms procurement out into the open.

"Despite the publicized scale of procurement, our defenders on the frontlines have not experienced its tangible impact," he wrote on Facebook.

The dispute comes at a critical time in the war with Russia as President Donald Trump reviews U.S. support for Ukraine's military and as Kyiv tries to convince its Western partners that it is winning the battle against endemic corruption.

Weapons supplied by Ukraine's Western allies including tanks, rockets, missile defences and ammunition are vital to Kyiv's war effort.

In a statement on Monday, diplomats in Ukraine representing countries in the Group of Seven major democracies urged officials to resolve the dispute quickly.

CONTROVERSY OVER ARMS PURCHASES

Umerov's appointment as defence minister in September 2023 followed months of corruption allegations against the ministry, and the DPA was charged with introducing more accountability in arms buying.

The agency has sought to cut out intermediaries in the defence sector and minimise the risk of corruption, and the appointment of its head, Maryna Bezrukova, was applauded by anti-graft lobbyists and Kyiv's Western partners.

But Umerov has accused the agency of playing "political games" and leaking information, and a deputy defence minister in charge of procurement was sacked by the government on Tuesday at Umerov's request.

Ukraine has long sought to keep details of arms procurement a closely guarded secret.

Bezrukova told Reuters she had not received any prior complaints about her work and that the management crisis could complicate future talks with prospective suppliers.

"This has effectively spoiled a year of our work to a significant degree," she said. "Confidence is built over a long time, but it can be destroyed very quickly."

The Defence Ministry's press service criticised what it called "media manipulation" around the dispute and said the NABU investigation of Umerov was a legal formality containing no evidence of wrongdoing.

President Volodymyr Zelenskiy has repeatedly urged Western partners to keep arms flowing to Ukraine as its troops try to prevent further advances by Russian forces in eastern Ukraine, almost three years after Moscow's full-scale invasion.

(Additional reporting by Olena Harmash, editing by Timothy Heritage)