The National Anti-Corruption Bureau of Ukraine has uncovered a corruption scheme in ‘Ukrzaliznytsia’ for the procurement of transformers, organized by an official of the Security Service of Ukraine

The National Anti-Corruption Bureau of Ukraine (NABU) announces the disclosure of a corruption scheme in the state-owned company “Ukrzaliznytsia” regarding the procurement of transformers at inflated prices by almost 100 million hryvnias (near 2,4 million euro).

This was reported by the press service of the National Anti-Corruption Bureau of Ukraine.

According to media reports, the scheme was organized by a former advisor to the Office of the President, a Security Service of Ukraine official named Artem Shylo. He has been detained.

The investigation reveals that from June to December 2022, the organizer, through officials under his control at Ukrzaliznytsia, ensured the victory of the “desired” company in the tender. To achieve this, he sent a letter to Ukrzaliznytsia titled “On threats to state security,” which served as the basis for rejecting proposals from other procurement participants with significantly more favorable prices.

Moreover, the winning company is controlled by a citizen of Belarus who, according to the National Anti-Corruption Bureau of Ukraine, has ties to Russia. He purchased the transformers in Uzbekistan and resold them to Ukrzaliznytsia at almost twice the inflated prices.

The losses to the state-owned company amounted to 94.7 million hryvnias (approximately 2.247 million euros). Arrests have been imposed on 53 million hryvnias (about 1.258 million euros) in the accounts of the supplying company. The leader, co-organizer, and two members of the organized group have been detained.