10 October 2024

Government procurement favorites revealed: which companies received budget billions

(PHOTOS: YouControl)

Last year, about 500 private commercial companies received almost UAH 150.5 billion from the state. Analysts have revealed which companies received the most public funds and how they are connected to influential political figures.

This is evidenced by an investigation by the Ukrainian online analytical system YouControl.

Over the past year, Avtostrada Group LLC, which is engaged in the construction and repair of roads and infrastructure facilities, has received about UAH 12 billion in public funds. The company is part of MS Capital, the ultimate beneficiary of which is Maksym Shkil.

Avtomagistral-Pivden LLC received UAH 10.5 billion from the state. A 2021 Forbes Ukraine article states that the company became a key contractor of the Big Construction program before the war started. The total value of the company's winning tenders is about 580 billion hryvnias, and its beneficiary is Oleksandr Boyko, who is also associated with Shlyakhovyk-97 LLC. This company is also an important supplier of materials and services to Avtomagistral-Pivdenna.

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Rostdorstroy LLC of theRostdorstroy group received UAH 7.6 billion in government tenders. The total value of the company's winning tenders is almost 470 billion hryvnias. The group includes two other companies that, together with Rostdorstroy, have received UAH 8.8 billion in public funds.

ONUR CONSTRUCTION INTERNATIONAL LLC, which is part of theONUR Group of Turkish entrepreneurs Onur and Ihsan Çetinçeviz, received more than UAH 4 billion in public funds, and the total value of their tenders exceeds UAH 320 billion.

ECO-BUD-TRADE LLC, which received UAH 2.2 billion, has been in bankruptcy since July 2024. The company's shareholders are Volodymyr Yatsun and Valeriy Mishchenko, who is also associated with the Mishchenko Family Group.

Each of these companies has so-called "red flags" in its procurement history. For example, the municipal enterpriseMykolaivoblteploenergo recently signed a contract with Avtostrada Group of Companies LLC for the construction of an underground heating network worth UAH 487.38 million at inflated prices. The construction was awarded to the company without competition due to specific requirements of the tender, which were challenged but not changed.

The roads in Mykolaiv region will also be repaired byRostdorstroy, a company affiliated with the Odesa mayor's party Trust the Deeds. More than one hundred million hryvnias were allocated from the budget for this purpose. Bidding for road repairs was announced by the Service for Infrastructure Restoration and Development in Mykolaiv Oblast.

In addition, the experts analyzed the measures taken by Energoatom and Ukrhydroenergo to prevent blackouts, including the construction of protective structures for key energy infrastructure facilities. The total value of orders for the protection of the South Ukrainian NPP amounted to UAH 140 million.

Анна Бальчінос

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