The court upheld the position of VB Partners’ lawyers and denied the State Bureau of Investigation’s request to seize UAH 32.1M confiscated from FPV drone manufacturer Vyriy Industries. The funds were fully returned to the company.
The State Bureau of Investigation conducted over 40 searches connected to Vyriy Industries – one of Ukraine’s largest FPV drone manufacturers. The searches were carried out without a court warrant under the guise of an emergency.
During the searches, UAH 32,141,310 was seized – funds that had been withdrawn from the company’s bank account specifically to cover employee salaries. The State Bureau of Investigation subsequently applied to the court seeking the seizure of the funds.
The defence relied on four key arguments:
- Legitimate Origin and Purpose of Funds.
VB Partners’ lawyers presented bank statements and tax compliance records to the court, as a Diia. City resident, Vyriy Industries officially employs its team and utilises legally compliant payroll mechanisms.
- No Connection to the Criminal Proceedings.
Asset seizure is lawful only if a direct link to the criminal proceedings is established. The prosecution failed to demonstrate any such connection.
- Proportionality of Procedural Actions.
Seizing the company’s payroll funds could have affected payments to employees, production processes, the execution of state contracts, and the timely supply of drones to units of the Defence Forces of Ukraine.
- Impermissibility of Warrantless Searches.
The defence drew attention to the practice of conducting searches under the guise of “urgency” and subsequently obtaining retroactive court approval. Such a practice must not become the norm in state-business relations.
The court found that the seized funds were unrelated to the criminal proceedings and denied the seizure application.
“When a company’s payroll is blocked under the guise of ‘urgency’, it is not only a problem for the defence sector – it poses a direct threat to the entire Ukrainian business community. I am pleased that our team was able to protect Vyriy Industries’ interests and secure the return of the seized funds to our client,” comments VB Partners Partner Serhii Boiko.
Vyriy Industries is one of Ukraine’s largest FPV drone manufacturers. The company produces thousands of drones each month and supplies its products to more than 200 units of the Ukrainian Defence Forces.
The investigative actions took place on 7 July at the company’s premises and those of its founder and suppliers.
The criminal proceedings concern the alleged overpricing of drones supplied by Vyriy Industries under state contracts.
Despite the searches, legal proceedings, and the forced relocation of both production and administrative facilities, Vyriy Industries continued fulfilling its state contracts.
