Bulgaria aids Ukraine in arms trade corruption probe with nationwide searches

Bulgarian judicial authorities carried out searches across the country on Tuesday (12 August) at the request of Ukraine’s National Anti-Corruption Bureau, as part of an investigation into alleged inflated-price arms deals linked to high-profile Bulgarian arms traders.

“The request is related to an investigation into corruption offences in Ukraine, committed during arms trading at inflated prices,” the state prosecution said.

The searches were carried out by investigators from the Bulgarian National Investigation Service, officers from the General Directorate for Combating Organised Crime (GDBOP), and the gendarmerie.

“The actions, in execution of the request for legal assistance, are carried out under the supervision of the Supreme Cassation Prosecutor’s Office. This is part of international cooperation in the fight against corruption,” the prosecution said in a statement.

The National Investigation Service raided the offices of Sage Consultants AD, one of Bulgaria’s arms traders, owned by businessmen Gancho Hristov and Hristo Hristov. According to unofficial information from the state broadcaster BNT, the company is being investigated for selling weapons to Russia in violation of the embargo, but there is no official confirmation of these claims.

“At this stage, no individuals have been detained,” Interior Ministry chief secretary Miroslav Rashkov told reporters on Tuesday afternoon.

“The operation is taking place in several regions and is entirely under the control of the National Investigation Service. Searches are being carried out at addresses not only in Sofia but in several other cities,” Rashkov said.

Interior Minister Daniel Mitov confirmed only that the Bulgarian authorities were providing assistance under international cooperation mechanisms.

Later in the day, the daily “24 Chasa” as well as TV channel BNT reported unofficial information that the same company was also being investigated for supplying weapons and ammunition to the Mexican Jalisco New Generation Cartel.

Earlier this year, at the request of the US authorities, Bulgarian national Petar Mirchev was detained in Spain on charges of supplying 50 Kalashnikov rifles and 140,000 rounds of ammunition to the Mexican cartel. Bulgarian services are investigating whether the weapons and ammunition were purchased by Mirchev from the Bulgarian company flagged by Kyiv. A few days ago, acting Prosecutor General Borislav Sarafov held a meeting at the National Investigation Service together with officers from the FBI office in Sofia.

The latest commercial register data on Sage Consultants, dating from 2021, show the company had 53 employees and a turnover of just €14 million – a small figure compared to the over €1 billion output of Bulgaria’s defence industry at the time. Following the start of the war in Ukraine, the Bulgarian arms sector’s revenues have tripled.

The declared beneficial owner of Sage Consultants is Hristo Hristov, who holds a majority stake in the company. The board of directors also includes Gencho Hristov and three other individuals. Gencho Hristov is also listed as the company’s representative and participates in the management of several real estate firms.

Hristo Hristov is also the majority owner of another company, Sage Technologies, registered at the same Sofia address. This firm also produces arms and ammunition, employs 450 people, and has revenues of €15.6 million. Sage Technologies owns a military plant in Plovdiv, which bTV channel confirmed is operational.

Hristo Hristov made headlines in 2019 when it was reported he had purchased a luxury property in Beverly Hills for $34.6 million.

The company’s address is in Sofia, where searches were also conducted.

Sage Consultants attempted to participate in the unsuccessful privatisation of Bulgaria’s largest arms manufacturer, VMZ-Sopot. In 2012, the company applied for the tender but was later disqualified by the state commission on the grounds that it did not meet the requirements.

What prompted Ukraine to request the investigation?

Just before the searches in Bulgaria, an Ukrainian MP and other officials were arrested on 3 August after the country’s anti-corruption agencies said they had uncovered a “large-scale bribery scheme” involving the purchase of drones and electronic warfare systems.

In a post on X, President Volodymyr Zelenskyy said a member of parliament, heads of regional and city administrations, and several members of the National Guard had been exposed for their role in a scheme in which state contracts with suppliers were signed at prices inflated by up to 30%.

Zelenskyy wrote that there must be “zero tolerance” for corruption in Ukraine and thanked the agencies for their work.

The independence of Ukraine’s anti-corruption agencies was restored on 31 July following nationwide protests. Zelenskyy’s government faced a backlash after submitting a bill that would have stripped the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAP) of their independence.

Many saw the move as a step backwards in Ukraine’s fight against corruption, leading to the largest anti-government demonstrations since the start of Russia’s full-scale invasion of the country in 2022.

Under domestic and EU presure Zelenskyy introduced a new bill restoring the agencies’ previous independence, which was passed by parliament just nine days after the initial legislation.