Raids at Drone Manufacturer Vyriy: The State Bureau of Investigation Alleges Price Gouging; the Company and “Babel” Claim They Are Under Pressure
7 July 19:02
The State Bureau of Investigations (SBI) has conducted an investigation into the Ukrainian FPV drone manufacturer Vyriy Industries and its owner, Oleksiy Babenko. The SBI states that it is investigating possible artificial inflation of prices in government contracts for the supply of drones. In response, the company, the publication “Babel”—of which Babenko is a co-owner—and the National Association of the Defense Industry of Ukraine have claimed that a campaign to discredit the company may be underway. The positions of both sides are published by "Komersant Ukrainian".
What the State Bureau of Investigations (DBR) says
The State Bureau of Investigations confirmed that searches were conducted at the home of the owner of Vyriy Industries.
According to the bureau, drones from this manufacturer were procured under government contracts in 2025. The total value of the contracts amounted to nearly 7 billion hryvnias.
Therefore, the investigation is currently examining the circumstances surrounding a possible artificial inflation of the cost of these contracts.
“According to the preliminary version of the investigation, the price of the drones may have been inflated due to the unjustified inclusion of overstated production, administrative, and other costs in the cost price. It is precisely these circumstances that formed the basis for the investigative actions,” the SBI reported.
At this stage, law enforcement officials have not reported any formal charges or other procedural decisions regarding Oleksiy Babenko.
What is known about the searches
Searches were conducted not only at Oleksiy Babenko’s residence but also at his brother’s and mother’s homes, as well as at the office of Vyriy Industries.
According to the publication “Babel,” during the search of the entrepreneur’s home, authorities seized a cell phone and the data stored on it, and also found $3,500 in cash.
“Babel’s” position
“Babel” claims that the searches were preceded by a large-scale information campaign against Babenko.
The publication’s editor-in-chief, Kateryna Kobernik, reported that over the past few weeks, a number of anonymous Telegramchannels and other platforms had been circulating materials in which Babenko was named as the instigator of the investigation into the 425th Separate Assault Regiment “Skelya” and accused of “discrediting” the Armed Forces of Ukraine.
According to her, a few days ago a false report also appeared online claiming that searches had been conducted and $5 million seized, although at that time, as the editorial staff asserts, no investigative actions had taken place.
“I am also, to put it mildly, surprised by the accusation of overpricing drones, because anyone even remotely familiar with this market knows that Viriya actually offers the lowest prices,” Kobernik noted.
She also stated that the editorial team links the current situation to pressure which, she said, the publication has been feeling since publishing an investigation into the “Skelya” regiment.
On the day the searches took place, “Babel” published a new article reporting on yet another list of deaths among servicemen while serving in the 425th Separate Assault Regiment “Skelya.”
Vyriy Industries’ Response
The company confirmed that investigative actions were taking place and stated that it is cooperating with law enforcement agencies.
At the same time, Vyriy Industries also suggested that the simultaneous launch of the media campaign and the searches might be interconnected.
“The company does not rule out that the simultaneous launch of the information campaign and the investigative actions may be part of attempts to discredit Vyriy Industries. Such actions could benefit both the enemy and unscrupulous market participants, with the aim of disrupting drone deliveries to the Ukrainian Defense Forces and slowing the development of Ukraine’s defense-industrial complex,” the company stated.
Reaction from the Defense Industry
The National Association of the Defense Industry of Ukraine (NAUDI) also responded to the situation.
The association emphasized that Vyriy is one of the pioneers of the Ukrainian FPV drone market and one of the largest manufacturers of drone components.
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NAUDI stated that it respects the work of law enforcement agencies and the need for investigations, but called for ensuring that these proceedings do not lead to a halt in production or a disruption in the fulfillment of contracts for the Ukrainian military.
The association also noted that the searches were preceded by a large-scale negative media campaign targeting the company.
“Any legal assessments and procedural decisions must be based solely on the results of an objective and impartial investigation, rather than on media pressure or public opinions,” NAUDI noted.
About Vyriy Industries
Vyriy Industries is a Ukrainian defense technology company specializing in the production of FPV drones and related components. The company is one of Ukraine’s largest manufacturers of drones in this class.
The owner and head of the company is Oleksiy Babenko, who is also a co-owner of the publication “Babel.”
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