“Ukrzaliznytsia” employees organized a large-scale scheme of extortion on every trip

A large-scale corruption scheme involving internal and international train services has been uncovered within “Ukrzaliznytsia,” Ukraine’s national railway company.

This was reported by the National Police of Ukraine.

The scheme was orchestrated by the head of a trade union organization, who acted as the shadow curator of all processes related to passenger rail transportation. He assembled a team from the leadership and staff of the Kyiv Passenger Station’s production unit, which he previously managed.

To ensure the scheme’s operation, the union leader personally approved candidates for train managers and conductors, explained the “rules of the game,” and decided on the extension of employment contracts. Candidates had to join the union and pay monthly dues, amounting to over 350,000 hryvnias (approximately €8,000) from all members. Those who refused these terms were either coerced into compliance, denied positions, or reassigned elsewhere.

Each train manager was required to contribute a portion of earnings from each route: at least 2,000 hryvnias (€46) for domestic routes and between 2,000 and 5,000 euros (€46–€114) for popular international routes. In just the first six months of 2024, the scheme siphoned off more than 70 million hryvnias (€1.6 million) from “Ukrzaliznytsia.”

The profits were generated through two illegal methods.

1. Conductors sold seats in service compartments—spaces not available for public ticket sales—for €300–500 each, without issuing proper receipts. Depending on the train type, there were 4–6 such seats per car.
2. Scheme participants purchased tickets for unoccupied seats before departure dates and resold them to passengers at prices 2–3 times higher than the official rates. These tickets often contained passenger information that did not match the travel documents.

Funds generated through these methods were not reflected in financial reports but were distributed among the scheme’s participants. The majority of the money was funneled up the hierarchy to the union leader heading the criminal organization.

To dismantle the scheme and apprehend its leaders and members, the National Police carried out a special operation.

Currently, 10 members of the criminal organization have been charged under articles related to forming a criminal community and abuse of power. During more than 80 searches, law enforcement seized cash in national and foreign currencies amounting to approximately 5 million hryvnias (€114,000), vehicles, handwritten records, documents, phones, and other evidence.

This is not the first time “Ukrzaliznytsia” has faced corruption scandals. Three years ago, the company spent 200 million hryvnias (€4.56 million) on low-quality materials for railcar repairs.