Numerous journalistic investigations into corruption risks within Ukraine’s Military Industry State Concern “Ukroboronprom” (henceforth UOP) have exposed the existence of numerous systemic problems which facilitate the ineffective use, and possible misappropriation, of State budgetary funds particularly, the funds of State-owned enterprises (SOE) belonging to UOP. This paper describes six basic schemes which indicate the possible involvement of unscrupulous high UOP officials as well as its enterprises. Each scheme appears designed to promote unlawful enrichment. The mechanics of each scheme are depicted by open-source information. The data presented in this research has already been studied and systematized by analysts of the Independent Defence Anti-Corruption Committee (hereinafter “NAKO”). What is novel about this report is that it contains several recommendations aimed at minimizing the corruption potential. This study will be useful to UOP’s high-level management, decision-makers within the security and defence sector, as well as think-tanks and NGOs dedicated to reforming the security and defence sector in line with Euro-Atlantic standards. NAKO invites governmental and non-governmental organisations to cooperate in this process of change-making.
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