Ukrainian authorities executed extensive searches on July 7 at the residences of Oleksii Babenko, CEO of Vyriy Industries, a leading drone manufacturer, as well as at the company’s facilities and among his family members. Babenko disclosed these events during a press conference in Kyiv.
According to Babenko, who claims to offer the lowest prices for drones, the accusations against him regarding excessive pricing are absurd. He highlighted that the State Bureau of Investigation conducted up to 70 searches, targeting not only Vyriy Industries but also its contractors and the homes of his relatives.
“When your drones are the cheapest on the market, being accused of inflated prices sounds ridiculous,” he told journalists, as reported by The Kyiv Independent. He suggested that the investigation appears to be a deliberate attempt to disrupt their operations, hinting at personal motives behind the allegations that he was unaware of due to their insignificance.
Currently, it remains unclear whether any individuals have been officially charged in connection with this case.
Vyriy Industries: A Key Player in Ukraine’s Defense Sector
Vyriy Industries is recognized for its affordable drones and is one of the largest firms in Ukraine’s defense technology sector, employing over 1,000 people. The company manufactures fixed-wing drones, fiber-optic guided drones, kamikaze drones, and retransmission equipment.
Babenko claims that approximately a quarter of the first-person view (FPV) drones used by the Ukrainian military are produced by Vyriy Industries.
Although initial reports suggested that Babenko was a suspect in the investigation, he clarified that he is currently a witness, indicating he may be questioned throughout the inquiry.
Ukrainian Prosecutors’ Statements
Shortly after the media began reporting on the case, the State Bureau of Investigation issued a statement confirming an investigation into an unnamed drone manufacturer.
Investigators allege that the company inflated production costs and administrative expenses related to government contracts amounting to 7 billion hryvnias (approximately 157 million dollars).
Additionally, the Bureau is examining whether the company utilized shell companies for money laundering, with the Financial Monitoring Service of Ukraine identifying suspicious financial transactions exceeding 197 million hryvnias (around 4.4 million dollars) at Vyriy.
The General Prosecutor’s Office of Ukraine, overseeing the investigation, indicated that there are also signs of tax evasion, following the discovery of significant amounts of cash at the company’s premises that were not recorded in financial records.
