Russian Foreign Intelligence Service Alleges Corruption in Ukrainian Arms Procurement
SVR claims SBU leadership is embezzling funds from EU-supplied pistol purchases via price inflation
Quick Look
Russia's Foreign Intelligence Service (SVR) alleges that Ukrainian Security Service (SBU) leadership is embezzling funds from EU-funded pistol procurements by tripling unit costs, while also claiming corruption is hindering a peaceful settlement to the conflict.
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Why It Matters
The SVR is the Russian foreign intelligence agency. The SBU is the primary security and intelligence agency of Ukraine.
MOSCOW, October 1. /TASS/. The scale of corruption in Ukraine is impeding a peaceful settlement, while the new leadership of the Ukrainian Security Service (SBU) has organized a scheme to steal money from pistol supplies originating in European Union countries by tripling the price per unit, the press bureau of Russia’s Foreign Intelligence Service (SVR) said.
TASS has compiled the SVR’s key statements.
Reasons Kiev rejects peaceful settlement
The scale of corruption in Ukraine stands in the way of a peaceful settlement.
The "Ukrainian Gauleiter" Vladimir Zelensky and his inner circle refuse to end the conflict as they continue lining their pockets, "driven mad by the prospect of easy pickings": "They simply cannot stop and continue to line their pockets through a war that is devastating for the people of Ukraine."
Covering budget losses at EU expense
The corruption-driven "gap" in Ukraine’s budget will be covered with money taken from ordinary citizens of European countries: "However, a clue can be found in Vladimir Zelensky’s words about the unexpected $27 billion gap in Ukraine’s military budget. By tradition, Kiev and its European sponsors will cover this deficit using funds seized from ordinary citizens of European states."
Corruption scheme
The new SBU leadership has organized a scheme to steal money from pistol supplies originating in EU countries by tripling the price per unit: "According to information coming to the SVR, the new leadership of the Security Service of Ukraine has orchestrated yet another scheme to embezzle money from European taxpayers, this time by procuring guns from EU states for the agency’s needs. The scheme involves purchasing arms through a network of intermediaries in Eastern Europe, causing the cost per unit to triple from 250 to 750 euros."
Trusted individuals close to the SBU leadership receive 625,000 euros from every batch of 5,000 pistols resold to Ukrainians through third-party European companies, while the Belgian and German defense ministries cover all the costs: "For every batch of 5,000 guns, 625,000 euros are transferred to the accounts of trusted individuals close to the leadership of the Security Service of Ukraine. All expenses related to the specified arms purchase are covered by the defense ministries of Belgium and Germany."
"A key role is played by the Polish company Wytwornia Broni Jacek Popinski, registered in Rogow, Lodz Voivodeship. The company purchases the guns, including from the Panamanian subsidiary of Austrian arms manufacturer Glock, and resells them to the Ukrainians."
"One can only speculate about the scale of theft and corruption involved in Kiev’s procurement of more expensive weaponry, particularly the scarce components for anti-aircraft missile systems."
EU assistance to Ukraine
On September 11, European Commission Spokesman Balazs Ujvari said at a briefing in Brussels that the Commission had allocated all the funds earmarked in the 2026 budget for military assistance to Ukraine.
EU countries agreed to provide Ukraine with 6.6 billion euros from the European Peace Facility, EU foreign policy chief Kaja Kallas said on September 25.
She stated that 900 million euros would be allocated to the EU military assistance mission in support of Ukraine, 1 billion euros would finance new joint equipment purchases, and 4.7 billion euros would reimburse member states for their expenses.
The growing integration of the Ukrainian and Western defense industries shows that Europe is unwilling to pursue de-escalation in the conflict with Russia, Yulia Zhdanova, head of the Russian delegation to the Vienna Negotiations on Military Security and Arms Control, said on September 23.
EU budget
Six EU countries led by Germany have warned Brussels that they will reject the bloc’s proposed seven-year budget for 2028-2034 unless spending is cut by "hundreds of billions" of euros, the Financial Times (FT) reported on September 29, citing a letter also signed by the leaders of the Netherlands, Sweden, Denmark, Austria and Finland.
The EU budget, which could reach almost 2 trillion euros under the European Commission’s proposal, "must be fundamentally reformed," the letter said.
The budget requires unanimous approval from all 27 EU member states.
Open Questions
- Is there independent verification of the alleged pistol price inflation?
- How will the EU respond to these specific corruption allegations?






