Four people have been arrested so far, including a member of parliament, a former governor, a military chief and a business leader in the drone industry.
They are suspected of having participated in a network that systematically embezzled public funds intended for defense procurement.
According to the national anti-corruption agency Nabu, prices were inflated for electronic warfare equipment and drones, with up to 30 percent of the contract value being passed on to private actors.
The arrests come shortly after President Volodymyr Zelenskyj reinstated the independence of the country's anti-corruption agencies, following harsh criticism of a new law that placed them under the control of the prosecutor general.
Zelenskyj thanks the authorities in a statement and emphasizes the importance of politicians' independence.
"It is crucial that our institutions are independent and have all the tools needed to really combat corruption".
Corruption in the defense sector has been a recurring Ukrainian problem during the war against Russia, and several revelations in recent years have shaken confidence in military authorities.
