Drone manufacturer Vyriy Industries has been reimbursed 32 million
This has been reported by Vyriy Industries.
The Pechersk District Court considered a motion from the State Bureau of Investigations on 22 July 2026. Investigators requested that the funds seized on 7 July during searches of the company’s premises be frozen.
Lawyers for Vyriy Industries submitted written objections and documents which, according to the company, confirmed the lawful origin of the money and explained why it had been held.
In particular, part of the funds was to be used to pay employees’ wages. The company stated that the court had not established a link between the seized funds and the criminal proceedings, and therefore refused the SBI’s request to freeze them.
Once the court ruling came into force, the full sum of 32,141,310 hryvnias was returned to the company.
What the court’s decision means
The court considered only the issue of the seizure of specific funds. Its decision does not mean the automatic closure of the criminal proceedings or the termination of the investigation into the possible overpricing of the drones.
At the same time, the State Bureau of Investigation will no longer be able to retain these 32.1 million hryvnias as property linked to the case, unless new legal grounds arise or another court ruling is issued.
Oleksiy Babenko, CEO of Vyriy Industries, stated that the company had not changed its critical assessment of the searches, but welcomed the further consideration of the matter in court.
“We have not changed our assessment of the events of the first day. But we also recognise that, subsequently, the law enforcement agencies have begun to act within the law,” said Babenko.
What the State Bureau of Investigation is investigating
Searches were carried out at Vyriy Industries and at Oleksiy Babenko’s premises on 7 July. On that day, the State Bureau of Investigation (DBR) announced an investigation into the possible overpricing of drones purchased by the state for nearly 7 billion hryvnias.
According to the investigation, in 2025 a private company supplied various types of drones to one of the state contracting authorities. Company officials allegedly inflated their cost price by including unjustified production, administrative and other expenses.
Law enforcement agencies are also examining information regarding the possible use of over 150 sole traders to formalise transactions, inflate costs and siphon off funds. This is the investigators’ version of events; the court has not yet reached any final conclusions regarding the officials’ guilt.
The investigation is being conducted under articles relating to the possible misappropriation of property on an exceptionally large scale, the legalisation of criminally obtained property, and the forgery of documents for the state registration of legal entities and sole traders.
In its official statement, the State Bureau of Investigation did not name the company under investigation. Vyriy Industries itself confirmed that searches had been carried out at the company’s premises and at its director’s home.
Was drone production halted?
Following the searches, Vyriy Industries was forced to relocate part of its production and administrative facilities. The company explained that this was necessary to protect its employees, keep the location of its production facilities confidential and prevent a halt to supplies for the armed forces.
According to the company, drone production did not cease. Vyriy Industries continued to fulfil government contracts and supplied products daily to more than 200 units of the Ukrainian Defence Forces.
The company states that, following the return of the seized funds, it is operating as normal. Meanwhile, the State Bureau of Investigation’s probe into the possible overpricing of the drones is continuing separately.
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