Mykolaiv electricity contract awarded without competition to a company with a Russian trace

Mykolaiv selected a contractor to supply electricity for traffic lights without a competitive procedure. The tender offer was submitted by only one company whose director was involved in a corruption case and whose owners were Russians.

This was reported by the Center for Public Investigations with reference to the Prozorro public procurement system.

A municipal specialized installation and maintenance enterprise has selected a contractor to purchase electricity for traffic lights in Mykolaiv.

The selected contractor must provide services until December 31, 2025. Only one company, Mykolaiv Electricity Supply Company, whose director is suspected of facilitating a bribe to the Deputy Minister of Energy, submitted a bid of UAH 3.5 million. The case concerns former Deputy Energy Minister Oleksandr Hale, who was detained for accepting a half-million dollar bribe.

Screenshot: Prozorro

The company's bid was reduced by UAH 335,350. It is currently awaiting a decision.

According to the YouControl online analytical system, the company was founded in 2018 with a registered capital of UAH 100,000. The founder of Mykolaiv Electricity Supply Company LLC is Mykolaivoblenergo Joint Stock Company. It is also related to VS Energy International.

In particular, the group includes 5 power distribution companies: JSC Khersonoblenergo, JSC Zhytomyroblenergo, JSC Chernivtsioblenergo, PrJSC Kirovohradoblenergo and PrJSC Rivneoblenergo.

The ultimate beneficiaries of VS Energy International are citizens of the European Union: Valts Vigants (Latvia), Vilis Dambins (Latvia), Arthurs Altbergs (Latvia), Oleg Sizerman (Germany), Marina Yaroslavska (Germany).

In July 2023, the Ministry of Justice filed a lawsuit with the High Anti-Corruption Court demanding the confiscation of VS Energy's assets. The Security Service of Ukraine, the State Bureau of Investigation, and a number of media outlets claimed that the company's owners were sanctioned Russians: Yevgeny Giner, Mikhail Voevodin, and Alexander Babakov (Deputy Head of the Russian Civil Service, who voted for the annexation of Crimea in 2014 and for the annexation of Zaporizhzhia and Kherson regions in 2022). In 2014, VS Energy changed its official owners.

Screenshot: YouControl

Since 2023, the company has been repeatedly featured in journalistic investigations. It also became one of the ten most profitable companies in Mykolaiv region. The company earned UAH 8 billion 68 million 208 thousand 327 from public procurement.

Recently, the Voznesensk Water Supply Utility Company signed an agreement for the purchase of electricity worth UAH 16.8 million. Mykolaiv Electricity Supply Company also won the auction.

In late December, Mykolaiv also signed a contract for the supply of electricity for outdoor lighting. The service will cover the city's districts, with the exception of Korabelnyi district, Varvarivka, V. Korenykha and M. Korenykha village. The only company that submitted a proposal was Mykolaiv Electric Supply Company LLC, which was awarded a contract worth UAH 10.6 million.

Анна Бальчінос