Former Progress head suspected of misappropriating over ₴1.1 billion in military export deal
Ukraine's anti-corruption authorities have notified the former head of the state-owned Progress enterprise of suspected misappropriation of more than 1.1 billion hryvnia. The allegations involve false documents for intermediary services in a military-equipment export contract, which caused losses of more than $43 million, or 30% of the contract value.
Key points
- NABU and SAPP notified the former head of Progress, a state enterprise within Ukrspeceksport, of suspicion during a pre-trial investigation.
- Taras Shyiko is identified as the suspect; he was Progress director at the time of the alleged wrongdoing and later served as a deputy general director of Ukroboronprom.
- The suspected loss exceeded 1.1 billion hryvnia, equivalent to more than $43 million and 30% of the contract value.
- Progress signed a 2015 agreement with a foreign company for intermediary services linked to the sale of Ukrainian military products.
- The state enterprise negotiated directly with a customer in the Middle East without involving the foreign company.
- In 2018–2019, the former head allegedly signed acts for agency services and arranged payments even though the services were not provided.
- The allegations are classified under Article 191(5) and Article 366(1) of Ukraine's Criminal Code.
Why it matters
The alleged misappropriation affected a state enterprise with exclusive authority over imports and exports of military goods. Losses exceeding $43 million represented 30% of the contract value, while the case brings scrutiny to intermediary arrangements and documentation in state military-equipment exports.
What happened
NABU, Ukraine's anti-corruption agency, and SAPP, the Specialized Anti-Corruption Prosecutor's Office, notified the former head of Progress of suspected misappropriation. The former head is identified as Taras Shyiko, who was also deputy general director of Ukroboronprom at the time of the alleged actions.
Progress had exclusive authority to export and import military goods. In 2015, its then-head signed an agreement with a foreign company that was to receive payment for intermediary services connected to the sale of Ukrainian military products. The enterprise itself conducted negotiations with a customer in the Middle East without the foreign company's participation.
During 2018–2019, the former head allegedly signed acts documenting agency services and arranged transfers to the foreign company. Investigators found that the services had not actually been provided and the documents contained false information. The resulting losses exceeded $43 million, or 1.1 billion hryvnia, amounting to 30% of the total contract value.
The allegations were classified under Article 191(5) of Ukraine's Criminal Code, covering large-scale embezzlement through abuse of office, and Article 366(1), covering the preparation and issuance of knowingly false official documents. Specialists from the State Audit Service assisted the pre-trial investigation.
How Ukrainian sources describe it
Ukrainian reporting focuses on the actions of NABU and SAPP, Taras Shyiko's alleged involvement, the falsification of service documents and the scale of losses to a state military-export enterprise. It also provides a detailed chronology of the transactions, the legal classifications and links Shyiko to a separate anti-corruption case.
Where reporting differs
One report added an apparently erroneous legal citation alongside the correctly stated provisions. The other reports identify Article 191(5) and Article 366(1) of Ukraine's Criminal Code.
Background
In March, NABU and SAPP exposed an organized criminal group alleged to have misappropriated more than 32 million hryvnia from Ukroboronprom enterprises between 2014 and 2019 and attempted to take more than 19 million hryvnia. Shyiko is described as a suspect in that separate case.