Criminal group, led by former presidential aide, embezzles $2.5 million from Ukraine’s state railway company
An organized group, led by a former advisor to the Presidential Office, was uncovered by Ukraine's National Anti-Corruption Bureau and the Special Anti-Corruption Prosecutor's Office, allegedly involved in embezzling nearly UAH 100 million ($2.5 million) from state railways Ukrzaliznytsia, as reported on Telegram on Apr. 2.
The ex-advisor allegedly manipulated the procurement process for power transformers from June to December 2022, ensuring the selection of a predetermined company at an inflated cost through controlled employees of Ukrzaliznytsia.
The investigation revealed that Ukrzaliznytsia rejected the other bidders proposals with much more favorable price terms based on a “threat to national security” letter from the group leader.
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As a result, the company, controlled by a Belarusian citizen with ties to Russia, purchased transformers from a manufacturer in Uzbekistan through a shell company registered in Bulgaria and resold them to Ukrzaliznytsia at almost double the price, resulting in total losses of UAH 94.7 million ($2.5 million) in 2022-2024.
The leader, co-organizer, and two members of the group were detained under Part 5 of Article 191 of the Criminal Code of Ukraine, and UAH 53 million ($1.35 million) was seized from the supplier's bank accounts.
The case is still under investigation. The NABU and SAPO have not revealed the identity of the former consultant, although MP Oleksiy Honcharenko claimed it was Artem Shyl.
On Jan. 9, the Ukrainian outlet Nashi Hroshi reported that Ukrzaliznytsia had signed a contract to purchase UAH 666 million ($17.5 million) worth of rails from Minerfin-Trans, which at the time was in partnership with the deputy head of the presidential administration, Rostyslav Shurma.
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