Case description
NABU-SAPO suspects former Non-Staff Adviser to the Presidential Office Artem Shylo, Member of Parliament Viktor Bondar, and other individuals of misappropriating funds through procurement for Ukrainian Railways.
Episode 1 – Cable Procurement
According to the investigation, in 2021 MP Viktor Bondar and businessman Volodymyr Kotliar organised a scheme for supplying products to UZ at inflated prices. Shylo facilitated the conclusion of contracts worth over UAH 100 million with a supplier of cable and wiring products, which subsequently transferred UAH 12 million to the account of a company owned by Shylo’s associate, Kostiantyn Melnyk.
Members of another organised group informally controlled the operations of companies participating in the tenders, ensuring their victory in exchange for a percentage of the contract value. In 2021–2022, companies controlled by an entrepreneur unlawfully won UZ tenders, inflating the expected product value with the assistance of officials.
As a result, the scheme caused Ukrzaliznytsia losses of over 140 million hryvnias, which the participants in the deal appropriated. Ten people are involved in this episode.
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Episode 2 – Transformer Procurement
Within the framework of the second episode, UAH 53 million was frozen in the accounts of the supplier Uzelectro. The controlling party of the winning company turned out to be a citizen of Belarus with ties to the Russian Federation.
According to the investigation, between June and December 2022, the UZ Back Office ensured the victory in a tender for the procurement of power transformers of a pre-selected company controlled by the Belarusian citizen, which supplied transformers at inflated prices. This episode also involves 10 individuals.
Shylo created a criminal group that included his subordinates, UZ officials, and several other individuals. He initiated a letter to UZ titled “On Threats to National Security,” which served as grounds for rejecting more favourable bids. At the same time, he ignored the Belarusian citizenship of the company’s owner and his links to the Russian Federation. Through an intermediary company in Bulgaria, the “winner” purchased transformers in Uzbekistan and resold them to UZ at nearly double the purchase price.
As a result of this scheme, in 2022–2024 UZ incurred losses of UAH 94.8 million, which the perpetrators allegedly misappropriated. Law enforcement authorities believe the company’s tender victory was artificially arranged. Shylo, however, claimed there was no evidence of this other than his letter “On Threats to National Security,” which led to the rejection of one supplier’s bids.
Episode 3 – Money Laundering
The third episode concerns the laundering by the leader of the organised group of over UAH 159 million, obtained through transfers to accounts of controlled individuals and legal entities disguised as payments for “beauty salon” services, as well as the acquisition of elite residential and commercial real estate.
According to NABU, the criminal group included Entrepreneur Ihor Butanov, UZ Deputy Director Oleksandr Shevchenko, First Deputy Director of a UZ Branch Oleksii Onysymiuk, Representative of the private company Uzelectro Denys Khomiakov, and three other individuals. In total, 15 suspects are involved in the case.
Investigators also claim that Shylo acquired two apartments in Kyiv, each worth UAH 3 million, despite similar properties on the market being valued at over UAH 9 million each. Among other charges, he is accused of laundering property.
Shylo’s actions have been classified under Part 5 of Article 191 and Part 2 of Article 209 of the Criminal Code of Ukraine. Other defendants are charged under Part 2 of Article 15 and Part 5 of Article 191 of the Criminal Code of Ukraine.
