Ukraine's costly arms deals: $770 million lost in chaos
Documents obtained by the "Financial Times" reveal that Ukraine spent hundreds of millions of dollars on weapons it never received. Ammunition stores from Arizona, arms companies with Syrian backgrounds, and startups from Virginia Beach secured contracts worth millions.
Fighting for survival, Ukraine had to suspend standard procedures and risk multimillion-dollar deals with intermediaries. Many of these intermediaries are little-known players often lacking the necessary background or certifications. As a result, Ukraine lost $770 million in advances—the weapons never reached the front, according to the "Financial Times".
An example is the story of 28-year-old American Tanner Cook from Arizona. Not long ago, he ran a small ammunition store. In 2022, he signed a contract with Ukraine worth about $52 million, promising to supply missiles and mortar mines. He received about $18 million in advances. However, he neither delivered the equipment nor returned the money.
Chaos in Ukraine's armament
A similar story involves the American company Regulus Global. In 2022, it was supposed to supply Ukraine with 155 mm caliber ammunition worth up to $1.7 billion. Spetstechnoexport, a state-owned Ukrainian intermediary, transferred over $160 million to Regulus. The company claims it invested in the supply chain, but according to Kyiv, some of the money was used improperly as per the agreement. The matter went to arbitration in London.
In a market where every month of delay could mean defeat on the front line, traders set the terms. "I have this in stock. Buy it or I'll sell it to your enemy," is how former Defense Minister Oleksiy Reznikov described their approach. The price increase resembled the frenzy experienced during the early days of the COVID-19 pandemic. Prices for Soviet-caliber ammunition quadrupled over a few months.
As the "Financial Times" emphasizes, chaos was coupled with corruption and poor coordination on the Ukrainian side. Dozens of contracts are now under investigation, and some former officials have already been charged. The new head of the Defense Procurement Agency, Maryna Bezrukova, attempted to reform the process but was dismissed—allegedly for excessively "disclosing" data about tenders.
