Czech drone supplier at centre of Ukraine military procurement corruption scandal

Czech-based defense company Reactive Drone is under investigation after authorities alleged it sold drones to the Ukrainian military at prices up to 2,000% above their purchase cost, according to Prague International Radio.

The National Centre for Combating Organised Crime raided the firm, which is owned by Konstantin Pilyaev and Ukrainian national Aleksey Kolesnik, amid claims it bought drones for 36 million crowns ($1.6 million) and resold them to Ukraine for 692 million crowns (over $33 million).

Investigators also believe the company evaded at least 130 million crowns ($6.2 million) in taxes through fictitious invoices and operated from a virtual office with no functioning contact number, while transferring most of the proceeds to bank accounts in China.

Authorities reportedly seized 384 million crowns ($18.3 million) and arrested Pilyaev, with the company’s accountant admitting involvement in the scheme. The case unfolds against the backdrop of a wider corruption scandal in Ukraine and increasing scrutiny of military procurement as Western nations continue supplying Kiev with weapons and funding for its war effort.

Image credit: Peter Fogden