Babchenko showed up at a news conference on Wednesday, saying that Ukraine's security services faked his death to thwart a plot on his life.
The head of the Ukrainian Security Service, Vasyl Gritsak, said that investigators had determined that Russian authorities had paid a Ukrainian national $40,000 to kill Babchenko.
Russian journalist Arkady Babchenko attends an interview in Kiev, Ukraine November 14, 2017.
Babchenko had been reportedly shot in the back in his apartment in Kyiv on Tuesday, dying in an ambulance on the way to the hospital.
Ukraine admitted it had staged the murder of Babchenko in order to foil an attempt on his life by Russian Federation.
Kiev police chief Andriy Krischchenko said Babchenko's death could be linked to his "professional activities".
He left Russian Federation past year after receiving death threats and being denounced by pro-Kremlin politicians over his criticism of the Syrian and Ukrainian wars.
Ukrainian Prime Minister Volodymyr Groysman said the "Russian totalitarian machine" had not forgiven Mr Babchenko for his "honesty and principled stance".
However, the journalist has appeared at a news conference in Ukraine.
In a statement, the Russian Foreign Ministry said journalists were being killed with impunity in Ukraine.
Babchenko was an outspoken critic of the Kremlin, speaking out against Russia's annexation of Crimea and against Russian involvement in Syria.
Mr Gerashchenko said: "As a result of a brilliant special operation conducted by Ukrainian law enforcers, the killer who was ordered to murder Arkady and the organiser of the murder were detained".
Having been called unpatriotic over a piece past year on Russia's intervention in Syria, Babchenko complained of an atmosphere of hate toward his work.
Mr. Babchenko sparked a backlash in Russia for his comments in a 2016 Facebook post on a Russian military plane crash. "Like many dissidents I am used to abuse, but a recent campaign against me was so personal, so scary, that I was forced to flee". Last year, he moved to Kiev, where he worked as a host for the Crimean Tatar TV station, ATR.
Babchenko also spoke about his time fighting in Chechnya, describing the philosophy of hate that he and his fellow soldiers were exposed to-that all Chechen men age 10-60 were enemies that Russian soldiers should "Kill, kill, kill".