Law enforcement officials have revealed details of the searches at drone manufacturer Vyriy – photos

Law enforcement agencies are investigating a criminal case involving the alleged embezzlement of state funds in connection with contracts to supply drones to the Security and Defense Forces. As part of this case, investigators from the State Bureau of Investigations conducted searches at the manufacturing company Vyriy Industries, as well as at the residence of its director, Oleksiy Babenko.

According to the investigation, in 2025, the company signed major contracts with the State Enterprise of the Ministry of Defense “Defense Procurement Agency” to supply various models of unmanned aerial vehicles (UAVs) for a total of 6.95 billion hryvnias. 

Investigators are currently examining the possibility that the final cost of the UAVs was artificially inflated by unjustifiably including inflated production, administrative, and other operating expenses in the cost of goods sold. To document these processes and create fictitious expenses, the company may have utilized a network of over 150 sole proprietorships and non-resident companies showing signs of being shell entities. 

Additionally, during searches of business premises, significant amounts of cash were discovered that were not recorded in the primary financial statements, which may indicate the use of tax evasion schemes and the transfer of non-cash funds to accounts of controlled business entities for their subsequent legalization. 

During interrogations, ten individuals registered as sole proprietors (including students and service sector employees) confirmed that they did not engage in any actual business activity and had provided the documents in exchange for payment. At the residential addresses of certain sole proprietors who executed contracts worth many millions, it was determined that their lifestyle and standard of living did not indicate the presence of any assets or income. 

The total amount of suspicious transactions identified currently exceeds 197 million hryvnias, which may have been diverted for subsequent money laundering. Additionally, during investigative operations at business premises, significant amounts of unaccounted-for cash were discovered.

Vyriy Industries stated that it is fully cooperating with law enforcement agencies and continues to operate as usual to fulfill defense contracts. At the same time, the manufacturer’s management noted that the investigative actions were preceded by a coordinated smear campaign on anonymous media platforms, which may benefit competitors or the enemy with the aim of disrupting the supply of military equipment to the front lines.

Source: Office of the Prosecutor General.

As a reminder, it was previously reported that the State Bureau of Investigations is conducting searches at Vyriy as part of an investigation into the possible overpricing of drones supplied to the state. The company itself stated that it is cooperating with the investigation, providing all necessary documents, and continuing to fulfill its contractual obligations to the Ukrainian Armed Forces. This was reported by the NAUDI press service.

The National Association of the Defense Industry of Ukraine has called on law enforcement agencies to ensure that Vyriy’s operations are not disrupted by the searches. The association emphasized that the company is one of the key manufacturers of FPV drones for Ukrainian defenders, and that any investigative actions should not disrupt the fulfillment of contracts.