Mykolaiv Businesses Profit from Road Repairs Amid Political Ties

Mykolaiv businesses are actively making money from road repairs and tile laying, where tenders and contracts often have political connections. Another contract for paving is expected to be awarded to the firm of a local deputy who has been repeatedly featured in journalistic investigations.

According to Prozorro, the electronic public procurement system, Mykolaiv plans to restore the city's public amenities, including asphalt pavement and sidewalk paving. For this purpose, Mykolaivoblenergo held a tender worth more than three million hryvnias.

Only one company submitted an offer - Mykolaivmagistral, a private enterprise owned by Mykolaiv Regional Council deputy SerhiyShulhych. The bid amounted to UAH 3 million 353 thousand 348, which is UAH 46 thousand 652 less than the expected procurement amount. The selected contractor must complete the work by December 31, 2025.

Screenshot: Prozorro

According to the YouControl online analytical system, Mykolaivmagistral PE was registered in 2021 with a minimum authorized capital of UAH 2 thousand. Despite this, the company regularly participates in tenders, and the total amount of its budget contracts has already exceeded UAH 1.2 billion. The company has been featured in eight journalistic investigations.

Serhiy Shulhach is a member of the Mykolaiv Regional Council from the Propozytsiya party. According to the Chesno portal, he is on the list of MPs with the largest real estate assets. The Shulhach family also owns other businesses, including Mykolaivtransport plus, which has previously concluded budget deals worth millions of hryvnias.

In December, the MP's company signed a contract for road repairs worth more than three million hryvnias. The contract was signed on December 19, and the contractor was supposed to complete the work by December 20, 2024. The Department of Housing and Communal Services entered into an additional agreement, increasing the estimate of the existing contract for the overhaul of road infrastructure on Bohoyavlenskyi Avenue by UAH 3.1 million.

Screenshot: YouControl

The largest share of spending on road repairs last year also fell on Sergiy Shulhach's companies. Private enterprises Mykolaivmagistral and Sovar Group Construction Company received contracts for almost UAH 105 million, which is 44% of the total cost of road procurement.

Mykolaiv also signed an agreement to repair a shelter with a favorite of the city council. This is the third contract with this company for the shelter. The agreement was signed with NDB Group on January 21, 2025. It is about the current repair of the civil defense shelter No. 52461, with an expected procurement amount of more than UAH 11 million.

Анна Бальчінос