Ukraine Loses $770 Million in Failed Arms Deals Since 2022

Since the start of the war with Russia, Ukraine has paid approximately $770 million in advance for weapons and ammunition from foreign suppliers that were never delivered, arrived incomplete, or were unusable. Investigations by the Financial Times reveal that these failed arms deals involved at least 30 contracts, including one with OTL Imports, a small Arizona ammunition shop that received a €17.1 million advance for artillery shells that never arrived; Ukraine won arbitration against OTL but has yet to recover the funds. The urgency of wartime procurement led Ukraine to rely on foreign intermediaries, often resulting in inflated prices, broken contracts, and exploitation by unscrupulous actors. Another major case involves Regulus Global, a Virginia-based company that received over $160 million in advance but allegedly failed to deliver NATO-standard artillery shells. Internal corruption and the chaotic arms market further complicated Ukraine’s efforts to equip its forces. Former Ukrainian officials have defended these measures as necessary to supply frontline troops amid desperate conditions.