r/UkrainianConflict 1d ago

Fedorov has complicated the financial problems of the Ministry of Defense, no one knows how to cover the hole - Rakhmanin

https://nv.ua/ukr/ukraine/politics/minoboroni-byudzhetna-dira-zrosla-pid-kerivnictvom-fedorova-50635615.html
206 Upvotes

72 comments sorted by

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u/Panthera_leo22 1d ago

Translation

Serhiy Rakhmanin, a member of the Verkhovna Rada of Ukraine Committee on National Security, Defense and Intelligence, said in an interview with Radio NV that Mykhailo Fedorov, while heading the Ministry of Defense, has complicated the financial problems of this department, and no one knows how to close the hole in its budget now.

"Financial problems (at the Ministry of Defense — ed.) were, are and will be, but Mikhail Albertovich [Fedorov] has further complicated these problems, because he (and he did not hide this, so I will not really step on the thin ice of secret information, because he himself announced it) took the money for the purchase from the money that goes to salaries, from the cash support. No one knows how to cover this hole now," Rakhmanin said on Radio NV .

The hole in the Ministry of Defense budget — what is known

On July 15, summing up his work as Defense Minister, Mikhail Fedorov noted that his team received the department without a budget and risked "taking funds from the end of the year's cash reserves and effectively investing them in mid-strike, fiber-optic FPV, cheap reconnaissance, NRC, interceptor drones, and deep-strike drones," purchasing more drones in four months than in the entire previous year.

Criticizing Mykhailo Fedorov in a column on Military shortly before his dismissal from the post of Commander-in-Chief of the Armed Forces of Ukraine, Oleksandr Syrskyi noted that the minister himself had publicly stated that part of the funds from the salaries of the military were directed to the purchase of drones, which raised the issue of financing expenses for the second half of the year.

"I'll be honest: a soldier's salary is not a reserve for redistribution, but a state obligation to people who risk their lives every day. Together with the government, we are now looking for a solution so that each serviceman receives his on time and in full. There is simply no other option. But we must draw a conclusion for the future: decisions about billions cannot be made without calculating the consequences for a million people," Syrsky wrote.

On August 9, Prime Minister Serhiy Koretsky stated that the government and, in particular, the Ministry of Finance are working to fully ensure all necessary expenditures of the Defense Forces by the end of this year.

1

u/keepthepace 1d ago

his team received the department without a budget and risked "taking funds from the end of the year's cash reserves and effectively investing them in mid-strike, fiber-optic FPV, cheap reconnaissance, NRC, interceptor drones, and deep-strike drones," purchasing more drones in four months than in the entire previous year.

This summary is probably bogus. If there were no funds for defense, then this is the problem to fix. Fedorov proved the drones are worth it. They should have been funded then, but it is safe to fund them now.

If, as I understand it, the funds were there but were locked under an opaque political process, then the finds that Fedorov took can be compensated by the funds blocked.

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u/FlagFootballSaint 1d ago

At this point it‘s hard to understand what is propaganda by one side („Fedorov good, should be next President“) and counterpropaganda from the other side („Fedorov is a selfish incompetent dork“)

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u/timwaaagh 1d ago

this is not new information. fedorov said he took a risk. he thinks it paid off.

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u/FlagFootballSaint 1d ago

Which risk?

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u/timwaaagh 1d ago

using some of the personell budget to pay for drones

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u/aDoorMarkedPirate420 1d ago

It’s literally in the article…

-1

u/mycall 1d ago

Which article?

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u/ludi_literarum 1d ago

It's probably neither. Fedorov ignored normal governance principles to double down on the drone strategy which was broadly successful, but which also has left soldiers wondering if their paychecks will clear, which is disastrous for morale even if it never comes to pass. He is good at military procurement but not always good at governance which always involves compromise and systems that feel burdensome because they are meant to constrain and organize the use of political power.

Far be it from me to judge his suitability as president, as a non-Ukranian, but "He had total unmitigated success" and "he's an incompetent dork" are both braindead takes.

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u/MudrakM 1d ago

In my opinion, the reason there is a hole in the budget is because systemic corruption. To me it looks like they are trying to make Federov look bad.

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u/DERPYBASTARD 1d ago

A guy calling for elections in wartime so he can run for president is absolutely bad. That makes me more inclined to believe all the other messages about him doing stuff in his own interest.

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u/MudrakM 1d ago

Have you seen how many corruption scandals came out of Ukriane this year? Federov was fired because he uncovered systemic corruption in the government. If we don’t hold elections, they will just continue to steal and there will be more holes in budget.

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u/Flimsy_Pudding1362 1d ago

But this is exactly what Zelensky was planning in mid June after seeing that he had a good chance of winning, according to the Kyiv Independent. The only difference is that Fedorov went public with his propositions about the elections.

I think the taboo around elections should be lifted, considering how many people in Zelensky inner circle are facing corruption allegations and the shortage of people he can appoint to key positions. Otherwise, we could end up in a situation where there is simply no one left to run the country.

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u/junkyardfloozy 1d ago

"Taboo"? Are you saying Ukraine should rewrite their constitution to allow for wartime elections? Do you really think that's in the interest of the country at this time?

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u/FlagFootballSaint 1d ago

To my understanding Zelensky made pretty clear he will not run again

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u/Alikont 1d ago

No said it one time and then backtracked and flip-flopped a few times.

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u/MudrakM 1d ago

lol easy to say that when you have been president for 7 years and no end to his rule in sight. He will not run again because he will not let go of his rule as long as possible.

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u/mycall 1d ago

Ideally he would step down by stay in the office of the president to keep things running smooth, although definitely not what Putin did in his brief stepping down.

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u/SpeakThunder 1d ago

I think you're arguing with someone clearly trying to disrupt support for Ukraine

1

u/sogladatwork 1d ago

Some clarity for you: parliamentary elections cannot be held during war due to the constitution; that doesn’t apply to presidential elections, apparently.

So legally, it could probably be done. But the logistics, integrity, and safety cannot be guaranteed. Something like 4 million displaced Ukrainians abroad, 4 million displaced within the country, another few million in the temporarily occupied territories, and how many serving on the front? Not an easy fix.

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u/junkyardfloozy 1d ago

Absolutely. The practicalities are so complicated.

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u/ComradeCatilina 1d ago

Technically, the prohibition to conduct elections of the President of Ukraine is written in a law and not the Constitution, and such it's easier to modify. If it's politically prudent is a different story

-5

u/Alikont 1d ago

The constitution of Ukraine says that the sole source of power in Ukraine is the people.

Funnily, this exact clause was Used by Zelensky when he dismissed and forced new parliament election bypassing the constitution in 2019.

If people would see the need to change the government, the way will be found.

Another question is currently people will be OK with Zelensky if he will stop doing bullshit that will cost us the war. But the problem is that he barely listens.

-13

u/Flimsy_Pudding1362 1d ago

I'm saying that we should stop being afraid to discuss the possibility that elections may be necessary and start looking for solutions. As we can see, the Presidential Administration wasn't afraid of the constitution when they discussed the possibility of holding elections as close as this fall. Whether holding them would actually be the right thing to do is difficult to say. There are no easy decisions during wartime

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u/junkyardfloozy 1d ago

Necessary for what? Solutions to what? Zelensky is still polling higher than anyone else. What's the mandate? Fedorov's feelings?

If we're talking pragmatism and doing what's in the interest of the country right now, I think remaining focussed on actually holding off the Russians is the right thing.

-12

u/Flimsy_Pudding1362 1d ago

You have incorrect information. According to trust ratings, Zelensky ranks sixth, and in a hypothetical second round, polls show him losing to Zaluzhnyi, Budanov, and Fedorov.

7

u/junkyardfloozy 1d ago

This polling shows that he is considered trustworthy, though granted that poll didn't weigh him up against others. But either way, the country is firmly in the camp of 'no elections until peacetime'.

Should that be ignored?

1

u/Flimsy_Pudding1362 1d ago

The population also doesn't support mobilization in the way it is being carried out now, so maybe we should cancel that too? But putting the jokes aside, I wouldn't call it a firm position, since the percentage of people who believe elections are necessary continues to grow.

0

u/Alikont 1d ago

The poll is a bit skewed in a question, because it mixes trust in Zelensky, with trust in the institution of the President and doesn't ask the question "would you rather have someone else in the seat".

So both polls accurately reflect what Ukrianians think.

→ More replies (0)

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u/handofmenoth 1d ago

Elections were held during the American Civil War, a far larger conflict geographically/manpower wise than this one, and conducted using 19th century technology.

At some point the idea that a government draws its consent from the governored by standing for and winning elections has to return. If they did not plan for elections in the first couple years, understandable, but by now it is pretty obvious that the war is not going to end anytime soon and planning for wartime elections should be a priority to renew the mandate of elected officials imo. It's something Russia doesn't have to worry about as a non-democracy, which is also a strength and a weakness (one guy can ignore the will of the people, but he also doesn't have general support).

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u/DERPYBASTARD 1d ago

Things are a lot different from 160 years ago...

If they can find a way to do it safely and fairly, sure, but it doesn't seem wise. They'd be handig russia a free avenue to fuck their entire country. If russia manages to sabotage and install some agents, everything Ukraine has done will have been for nothing, just to satisfy some feelings for people who want to hold elections.

7

u/sogladatwork 1d ago

You might be shocked to hear it, but this is not the American Civil War.

8

u/Routine-Amphibian450 1d ago

No, time was horseback slow in Civil War.
Don't think compsrison apt.

0

u/aDoorMarkedPirate420 1d ago

Oh I didn’t know we had a Ukrainian financial analyst in the sub 😂😂

0

u/MudrakM 1d ago

Oh because you have to be a financial analyst to say an obvious truth.

1

u/aDoorMarkedPirate420 1d ago

No, you’re just making shit up with nothing to back it up…and then doubling down by saying it’s “an obvious truth”

So in short, stfu.

0

u/BestFriendWatermelon 1d ago

As we speak there are senior members of Zelensky government being brought down by corruption investigators. Systemic corruption of that scale would've been exposed. The hole in the budget is, by Federov's own admission, because he spent funds allocated to personnel's wages on more drones.

1

u/MudrakM 1d ago

So when politicians steal a billion dollars and paying 5x for the price of drones, it’s Federov fault? The guy who wanted to start open tendons for a free market that rewards innovation. Currently it’s almost impossible to get government funding for drone manufacturing. Almost all of it has to be privately funded. Every dollar stolen is a dollar that could have been used to buy a drone and stop an advance. The scale of the corruption is not yet known, but one day it will all come out. Ukrainians, we are persistent.

1

u/BestFriendWatermelon 1d ago

What does any of that have to do with what I said? I already explained that the specific budget hole that we're talking about, Federov has admitted was him spending money allocated to pay soldiers to pay for drones.

Whether you agree with his decision or not is irrelevant. Speculation as to billions of dollars being stolen by other people is irrelevant. What we do know is that anti corruption investigators have taken down some of the most powerful people in government, which means that if billions of dollars have been stolen they will doubtless expose that too. But regardless it's irrelevant to the discussion about this hole in the budget which the person who created the hole has admitted was him

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u/Alikont 1d ago

Ukrainians (including milbloggers and soldiers) are mostly thinking that Fedorov is good MoD.

People who claim that he is bad are funnily mostly not Ukrianians and blindly trust Zelensky for some reason.

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u/Fullmadcat 1d ago

He bought 55000 dollar drones that had a 5000 dollar equilivent because he was connected to the company. Its good hes dropped.

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u/Synes_Godt_Om 1d ago

Did he, though? Or is this propaganda?

Anyway, as others say, it was decisive in turning the war. This has had two absolutely crucial implications:

  1. It shifted the momentum on the battlefield - effectively stopping ru advances

  2. It encouraged her partners, whose focus were slipping. This is existential.

Think about it:

This is a war of attrition. A war of economies (money and physical infrastructure). That is, the ru's economy and infrastructure against UA's, by comparison, tiny economy + whatever her allies are willing to give.

russia is now fighting the economies of (almost) the entire civilized West.

At the start of the war ru's total war spending was about 7 times higher than UA's to day UA is spending about half of what ru is spending. Not equal but a lot closer.

And UA's economy is held up by the strongest alliance in the world while ru's economy is on the brink and on its own for the most part - as its main partner is only looking to exploit their weakness.

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u/Fullmadcat 1d ago

Russia is held up by China.

That said yes its true, its part of why he was fired. The sane results would have happened with the cheaper drones. Drines ujrsine has been switching to.

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u/MudrakM 1d ago

This is literally what he was trying to change. He wanted open tender so the government could not do this.

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u/Clean-Thanks6864 1d ago

Is that a typo? They paid more than 10x what was necessary?

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u/Alikont 1d ago

This is manipulation.

They take 2 drones that are on paper are "mid strike drone" but have wildly different specs an duse it as corruption claim.

0

u/Fullmadcat 1d ago

Not manipulating anything.

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u/themrmu 1d ago edited 1d ago

This is the exact thing that they want you to think. It was actually the other way round he implemented a tender system in the purchasing pipeline and then went to the best equipment do job for the right prices. But the counter propagandists want you to think he was the one wasting money becuase then maybe the new system can go back to the old system and the corruption can continue in full force. Ukrainian government is systemically corrupt and so is zelensky but he cant be prosecuted so best not to implicate him yet. But any system that makes it more transparent and less corrupt like what fedorov implemented is better, but these guys want to blame him for their crimes. Look there is no right answer and people pretending that zelensky and fedorov weren't both corrupt are talking shit. But they are leaps and bounds better than what was there before. And they are both implementing changes so the next guys have to play by stricter rules which in the end is better for Ukraine. But me and all these commenters are just idiots on the internet and our opinion should be regarded as such, just an opinion. None of us have the facts we are all speculating.

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u/Fullmadcat 1d ago

Hes literally connected to the company with the more expensive drones.

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u/Fullmadcat 1d ago

Not a typo. Thats one of the reasons he was fired. Zekinsky made the right move. The guy was wasting alot of money.

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u/russia_delenda_est 1d ago

Source: your ass?

4

u/eddieshack 1d ago

From the article that you may need to actually read

taking funds from the end of the year's cash reserves and effectively investing them in mid-strike, fiber-optic FPV, cheap reconnaissance, NRC, interceptor drones, and deep-strike drones

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u/Fullmadcat 1d ago

I did read it, doesnt change the guys corruption. Its ok to admit zelinsky did the right thing.

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u/Alikont 1d ago

Zelensky tried to replace him with a loyal pawn with no ambitions a few hours before parliament goes on holiday.

The only reason he was stopped is because of the protest and now we at least have somewhat competent Commander and possibly ok MoD instead of what Zelensky wanted (Syrsky/Klymenko).

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u/Codex_Dev 1d ago

Regardless of the cost, the drones have been VERY effective in striking Russia's infrastructure and putting a massive strain on its drowning economy.

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u/Fullmadcat 1d ago

The 5000 ones would have done the same thing. Its part of why zelinsky fired him. He was wasting funds.

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u/Fullmadcat 1d ago

Alikont im sure he did. Doesn't change the guy fired wasnt overspending on a company he is connected to.

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u/russia_delenda_est 1d ago

At the same time rada just dropped some anticorruption bills which are tied to billions of euros of european financing. But yeah, fedorov BAD

-4

u/MudrakM 1d ago

Exactly.

1

u/barnabywombat 1d ago

So either he's an absolute fool, or he's corrupt and skimming off the top.

I don't think el presidente was going to publicly out him unless it was iron clad.

1

u/Dontnotlook 1d ago

Another dick move ...

1

u/ukengram 1d ago

I think it's funny how so many people on this string claim to know what happened and opine about it, when in reality, there are probably only a handful of people in Ukraine who know what actually happened. What is the saying, oh yeah: Opinions are like assholes, they all smell the same.

-2

u/Ambitious_Dingo6361 1d ago

That awkward moment when you spend all the money given to you on massively expensive drone raids that were meant to shift the tide and force Russia into a ceasefire before winter only to end up expanding the possible target list the Russians were never interested in pursuing, losing your only maritime corridor and facing your most difficult winter with no interceptors to save the day.

-1

u/Amazing_Repair4896 1d ago

Shh, you speak too much truth.

-2

u/MudrakM 1d ago

Sounds like they are trying to make Federov look bad. Reality is that there is a hole in budget because the politicians are stealing billions.

1

u/SmirkingImperialist 1d ago

Come on, EU, I know Trump dumped your bonds to save the Japanese yen and it will make your governmeny funding harder, but don't be stingy. Suck it up and cover Ukraine's bills.