The BES blocked the company’s work «Ukrainian Armor» — the head is suspected of financial fraud

The Bureau of Economic Security (BES) has blocked the work of «Ukrainian Armor» on charges of causing damage to the state. What both sides say.

Investigation

Back in May 2023, after searches and seizures of body armor and other ammunition worth more than ₴40 million, the company’s accounts were arrested. For almost a year now, the company’s work has been effectively blocked, and «Ukrainian Armor» has not participated in public procurement. This month, Denys Milinevskyi, the company’s commercial director, was suspected of tax evasion and financial fraud by the BES. The investigation is ongoing, and an expert examination is underway to prove the damage.

Investigators suspect that documents were forged, which allowed «Ukrainian Armor» to obtain privileges for the import of military goods into Ukraine in April-June 2022 — which were allegedly actually sold through specialized stores. In this way, they imported more than ₴100 million worth of goods, of which the state lost ₴30 million in taxes.

Company version

According to Denys Milinevskyi, the BES credited non-payment of taxes for all of the company’s imports, despite the fact that an additional 2% single tax rate was in effect at the time. Last fall, the company complained to the President’s Office, where they promised to look into the situation, but nothing has changed so far.

In 2024, «Ukrainian Armor» sought to produce and sell its own ammunition to the state. The manufacturer built the appropriate facilities and overcame all the necessary bureaucratic obstacles. In December, the company became the first manufacturer to be certified by the Ministry of Defense for body armor for female soldiers — there are only two such companies.

«Ukrainian Armor» links the open cases to the increase in its own production, which made it possible to participate in the Ministry of Defense’s tenders — allegedly, after that, the BES began its actions. This is the opinion of the company’s CEO, Jan Honcharov. according to him, the company’s production increased tenfold at that time. The seizure of accounts and the criminal case made it virtually impossible to produce and attract investment.

Why it is important

Only six manufacturers in Ukraine, including «Ukrainian Armor», can produce bulletproof vests in accordance with all existing requirements. The company also produces ballistic helmets and other tactical ammunition. But the company’s production has been blocked for a year because of this case.

«Ukrainian Armor» sells goods in an online store and six of its own stores in Kyiv, Bila Tserkva, Zaporizhzhia, and Dnipro. In 2019, the company’s UARM brand appeared on the US market.

Since the beginning of the massive Russian invasion in 2023, «Ukrainian Armor» has directly supplied 60,000 armor plates and 30,000 helmets to the Armed Forces of Ukraine. In 2024, it intended to sell its own ammunition to the state.

The State Logistics Operator (DOT) was supposed to purchase about 135,000 bulletproof vests through a 10-lot tender. It was possible to find a supplier for only one of them — production of 15 thousand bulletproof vests. the rest of the procurement «was stalled» due to the lack of suppliers meeting the tender conditions. The production of «Ukrainian Armor» can provide 45 thousand bulletproof vests and about a third of the annual needs of the Ukrainian Defense Forces for armored ammunition, but due to the situation described above, this is not happening.