Controversial Ukrainian defense procurement plan under scrutiny: Border Guard Service's role in multimillion dollar deal raises concerns

A recent government initiative to grant the State Border Guard Service the authority for defense procurement worth 23 billion hryvnias ($550 million) has sparked public debate.

On November 29, the Cabinet of Ministers, via Resolution No. 1191, approved the Ministry of Defense's proposal to delegate the State Border Guard Administration the power to purchase defense goods valued at 23 billion hryvnias ($550 million) for the needs of the Defense Forces, with the subsequent transfer of goods to the Armed Forces of Ukraine.

Yuriy Nikolov, the author of the "Nashi groshi" (Our Money) project, calls it the largest "one-time" scam of the year.

"So, they are looking to send 23 billion hryvnias overseas in one swoop, with 100% prepayment for weapons no one has seen. Not only is the price inflated but there is a risk of never seeing this mountain of billions again," Nikolov claims.

In response, the State Border Guard Service emphasizes that they are an integral part of Ukraine's Defense Forces.

"We have a second-level financial manager's certificate authorized by law for weapons procurement. Moreover, our units have long been involved in combat operations, so providing military equipment is our real task," the agency explains.

To address questions about the legality of such actions, the border guards present statistics.

"This year, we have already managed over 36 billion hryvnias ($860 million) in defense procurement, and there hasn't been a single delivery failure."

Additionally, the State Border Guard Service highlights that all proposals go through the Ministry of Defense and the General Staff. They also only work with verified suppliers, receiving the lowest price offers on the market.

As for the allegations of money being funneled to an overseas "shell," the agency clarifies that suppliers they work with hold NATO certifications and have extensive experience in the arms market.

"In recent years, we've signed dozens of contracts with these companies and have never encountered delays or unfulfilled obligations," the border guards state.

Furthermore, each supplier undergoes regular audits in EU countries that issue export licenses.

"Our units are already equipped with mortars, artillery, MLRS, and even modern weaponry for which we independently negotiated purchases," the State Border Guard Service explains when asked if their officers have the necessary arms expertise.

In times of war, strategic plans behind the front lines must achieve speed and efficiency.

"We are ready to address public concerns but ask for one thing: do not create phantoms where only myths exist," the State Border Guard Service concludes.

  War in Ukraine, State Border Guard Service of Ukraine

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