Credit: Mart Nigola, Hele-Mai Kulleste / Delfi Estonia.







A rare glimpse into covert arms sales world: How Western companies make a fortune on brokering deals for Ukraine

By Lennart Hofman (editor until October 2023), | 25 January, 2023

When Russia invaded Ukraine in February 2022, Ukraine desperately needed weapons to defend itself. European private arms dealers saw an opportunity and offered their services at inflated prices.

The Investigative Desk and its partners investigated the arms market and got their hands on financial records of a multimillion-dollar deal from March 2022. These show how 12,500 anti-tank grenades entered Ukraine through intermediaries from the Czech Republic, Estonia and the Netherlands. The documents show that the Estonian intermediary, who played a central role in the deal, retained EUR 2 million, or nearly 30% of the value of the transaction, as an apparent commission – six times more than usual, according to market insiders. The large number of companies involved in the deal leads to poor monitoring and drives up the price of arms. As a result, Ukraine has fewer weapons to repel violent Russian aggression.

For this investigation, The Investigative Desk collaborated with Lighthouse Reports, Eesti Ekspress (Estonia), Die Welt (Germany), and The Kyiv Independent (Ukraine).

Read the full stories in Eesti Ekspress (in Estonian), Die Welt (in German), Kiyv Independent (in Ukrainian) and NRC (in Dutch).



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