Law enforcement officers have exposed an organized group led by a former advisor to the Office of the President of Ukraine that illegally seized UAH 94.8 million in funds of Ukrzaliznytsia. This was reported by the Specialized Anti-Corruption Prosecutor's Office and the National Anti-Corruption Bureau of Ukraine.

According to the investigation, from June to December 2022, the alleged head of the group, through controlled employees of the railroad, ensured the selection of a company that supplied power transformers at an inflated cost.

He sent a letter to Ukrzaliznytsia "On Threats to State Security," which became the basis for rejecting the proposals of other bidders with much more favorable prices, law enforcement officials say. The winning company is controlled by a citizen of Belarus with ties to the aggressor country Russia, NABU said.

"This "winner" purchased transformers from a manufacturer in Uzbekistan through a controlled shell company registered in Bulgaria and resold them to UZ at an artificially inflated price of almost twice as much. As a result of the scheme, during 2022-2024, Ukrzaliznytsia suffered losses in the amount of UAH 94.7 million, which the participants took possession of and disposed of at their own discretion," the Bureau said in a statement.

It also informed that the court arrested UAH 53 million in the bank accounts of the supplier company.

The NABU and the SAPO report on the detention of the leader, co-organizer and two members of the organized group. The case has been preliminarily classified under Part 5 of Article 191 of the Criminal Code of Ukraine (misappropriation or embezzlement as part of a group). The sanction of the article provides for up to 12 years in prison with confiscation of property.

Law enforcement officials do not name the former advisor to the Presidential Office who is involved in the case. However, Oleksiy Honcharenko, a member of the Verkhovna Rada from the European Solidarity party, wrote on Telegram that it was Artem Shilo.