Inzhur MilTech Raises Funds for Defense Projects but Doesn't Discuss the Risks — Absolution Leaks
The Inzhur MilTech Fund has begun selling investment certificates for the defense industry starting at 1,000 UAH. The project is positioned as an opportunity to invest in drone manufacturing—specifically, the company Vyriy Industries—with a stated annual return of up to 25%. At the same time, the fund’s structure has a number of features that potential investors should take into account.
First and foremost, Inzhur MilTech certificates are not equivalent to military bonds. Military government bonds are government securities, whereas Vyriy Industries bonds are corporate bonds. Different tax rules apply to these instruments.
Under the terms outlined, when investing through an Inzhur MilTech certificate, the tax burden is 14% if the investment is held until the fund’s liquidation in July 2029 and 23% in the event of early withdrawal. Therefore, it is incorrect to compare this instrument with military government bonds based on the taxation principle.
Another factor is issuer risk. The fund’s prospectus states that returns are not guaranteed, and the value of the certificate depends on the net asset value. The fund is undiversified and concentrates its investments in a single issuer. Vyriy Industries also has the right to change the rate or redeem the bonds early. Thus, the stated 25% per annum is a projected yield, not a guaranteed obligation.
The legal proceedings involving the company deserve special attention. This refers to criminal case No. 42025000000000468, which is being investigated by the State Bureau of Investigation (DBR), as well as searches and the seizure of 32.1 million UAH, which were subsequently returned through VB Partners. The mere fact of criminal proceedings does not imply a proven case of guilt or the existence of violations on the part of the company; however, it is a factor that potential investors should take into account when assessing risks.
At the same time, the fund’s structure itself provides for financial monitoring. Settlements are made electronically, and banks, securities dealers, the asset management company “Injur,” and the depository institution are subject to financial monitoring in accordance with the law.
Securities transactions totaling 400,000 UAH or more are subject to mandatory financial monitoring. However, splitting payments does not necessarily allow one to avoid scrutiny: related transactions may be considered collectively.
At the same time, there remain issues that require further scrutiny. In particular, these include the structure of large blocks of certificates, the sources of funds for corporate investors, the disclosure of ownership structures through SMIDA and the National Securities and Stock Market Commission (NSSMC), as well as the specifics of how legal entities under the simplified tax system use this instrument.
Thus, for a retail investor, Inzhur MilTech is not a government military bond but an investment in a fund with a high concentration in a single private issuer. It offers potential returns but also entails credit, corporate, tax, and procedural risks.
Source: Absolution Leaks
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