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Ukraine Probes $680,000 Military Fuel Embezzlement

Ukraine’s Prosecutor General’s Office said the accused in Ukraine’s Mykolaiv region forged documents for extra fuel needs, then sold off the excess to make an illegal profit.

Kyiv Post

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5. März 2026

4 min read

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Ukrainian authorities said they had uncovered two fuel embezzlement schemes from within the military that amounted to a total state loss of Hr.30 million ($683,950).

The first case took place in the southern region of Mykolaiv between 2022-25, where military officials allegedly falsified documents to obtain surplus fuel and resell it for profit, according to a Wednesday press release by the Prosecutor General’s Office.

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Another case took place in central Ukraine’s Zhytomyr region between 2024-25, in which incorrect data entry prompted the inclusion of unnecessary taxes, which the Prosecutor General’s Office said “led to the unjustified transfer of Hr.8.3 million [$189,226]” that “should have been allocated for defense needs.”

The Prosecutor General’s Office said that since the beginning of 2026, 54 individuals have been notified of suspicion in 29 criminal proceedings related to abuse of office or negligence in defense procurement, with total established losses amounting to approximately Hr.3.4 billion ($77 million).

133 tons of gasoline, over 364 tons of diesel stolen in Mykolaiv

Ukraine’s Prosecutor General’s Office said the accused in the Mykolaiv region forged documents for extra fuel needs, then sold off the excess to make an illegal profit.

Case materials said the suspects – including military officials and the owner of a gas station – knowingly inflated fuel requests for training exercises, falsified usage records to justify the excess, and then sold the surplus for profit.

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“Among the suspects: former heads of units of the Ministry of Defense of Ukraine and the General Staff of the Armed Forces of Ukraine, the head of the fuel and lubricants service of the military unit, and the head of the gas station,” the press release says.

“To cover up the illegal activity, fictitious invoices and property movement reports were prepared. The fuel was then illegally sold to third parties, and the proceeds were distributed among the participants in the scheme,” it adds.

In total, 133 tons of gasoline and over 364 tons of diesel worth Hr. 22 million (501 563) were misappropriated, the office said.

The suspects have been served notices of suspicion – a procedural step in Ukraine’s legal system that precedes the formal filing of charges.

Unnecessary VAT inclusion

The Prosecutor General’s Office said state losses were incurred in the Zhytomyr region because 20 percent of value-added taxes (VAT) were entered when they were not needed during military fuel purchases.

As a result, the office argued that due to the official’s oversight, “unjustified [transfers]” were made.

“According to the investigation, in 2024-25, during the conclusion and execution of contracts for the supply of fuel oil to military units, the official failed to ensure proper control over the application of legislation on the taxation of defense purchases,” the press release says.

“Despite the established zero VAT rate, payment was made with the inclusion of 20% tax, which led to the unjustified transfer of Hr.8.3 million, which should have been allocated for defense needs.”

The suspect, who served as “the head of the district’s housing and operational department,” received a notice of suspicion for “neglect of duty in military service” during martial law, as stipulated in the Criminal Code of Ukraine. He faces up to eight years in prison if convicted.