Employees from a Ukrainian arms firm conspired with defense ministry officials to embezzle almost $40 million earmarked to buy 1,00,000 mortar shells for the war with Russia, Ukraine’s security service reported. The SBU said late Saturday that five people have been charged, with one person detained while trying to cross the Ukrainian border. If found guilty, they face up to 12 years in prison.

The investigation comes as Kyiv attempts to clamp down on corruption in a bid to speed up its membership in the European Union and NATO. Officials from both blocs have demanded widespread anti-graft reforms before Kyiv can join them. Security officials say that the current investigation dates back to August 2022, when officials signed a contract for artillery shells worth 1.5 billion hryvnias ($39.6 million) with arms firm Lviv Arsenal.