Mykolaiv region selects contractor for reconstruction of substation for 60 million

Mykolaiv Oblast has selected a contractor to reconstruct a substation of JSC Mykolaivoblenergo. The contract was awarded to Kyiv-based Ukrtransmist company, which has been investigated more than once for suspicions of embezzlement of budget funds and failure to protect energy facilities.

The Center forPublic Investigations decided to find out whether it could be linked to the latest corruption scandal in the energy sector.

In November, the Regional Infrastructure Restoration and Development Service announced a tender for the reconstruction of Object 6. More than UAH 60 million was allocated for this work, which is to be completed by March 31, 2026. Facility No. 6 is one of the substations of JSC Mykolaivoblenergo that ensures electricity distribution in the region.

To accelerate the strengthening of critical infrastructure, the government adopted Resolution No. 142 in February 2025, which launched a pilot project for the construction, reconstruction, and modernization of strategic energy, transportation, and life support facilities.

SCREEN SHOT: Prozorro

As part of this program, the Mykolaiv Regional Military District Administration issued an order to assign the Service to restore the functions of the customer (No. 455-r of 23.10.2025). After that, Mykolaivoblenergo officially transferred the customer's powers to the Service for the reconstruction of Facility No. 6 - the relevant agreement was signed on November 4.

The Cabinet of Ministers has also allocated funds from the state budget reserve fund to strengthen defense capabilities (Order No. 1135-r of 18.10.2025), and the Mykolaiv Regional Military Administration has designated the Service as the recipient of this money (No. 472-r of 03.11.2025).

The Ukrtransmist company is well known in the contracting market. Its founder was previously Mykola Karnakov, and its director was Iryna Filyaeva (now Iryna Karnakova). Karnakov himself is also associated with Altcom Road Construction LLC, which is part of the group of Donetsk businessman Oleksandr Tislenko, a contractor during the Yanukovych era and in the preparation for Euro 2012.

This is not the first time law enforcement has paid attention to Ukrtransmist's activities. In 2019, the investigation opened proceedings into the possible misappropriation of almost 650 million hryvnias during the repair of Kyiv's overpasses by Ukrtransmist and Kyivavtodor. Separately, the company was involved in a case of embezzlement of UAH 494 million for repairs in the Sviatoshynskyi district of Kyiv.

Analysts estimate that since 2017, the firm has received more than UAH 8 billion from public procurement, with the largest volumes in 2023, when the amount exceeded UAH 4.5 billion.

SCREENSHOT: YouControl

According to the most recent court ruling of November 12, 2025, officials of the Ministry of Communities and Territories Development, the State Agency for Reconstruction, regional Reconstruction Services and Mykolaiv Regional State Administration may have acted in collusion with representatives of the State Tax Service. According to the complainant, the scheme involved controlled companies, including Ukrtransmist and Rostdorstroy.

According to the investigation, these structures were used during tenders for construction and reconstruction in Mykolaiv, Kherson and Odesa regions, which led to large-scale embezzlement of budget funds.

So, despite suspicions of misappropriation of hundreds of millions and failure to perform work to strengthen the energy sector, Ukrtransmist was again awarded a state contract - this time for the reconstruction of a substation worth more than UAH 60 million.

The company has also been linked to the failure of the state program to protect key substations in the southern regions. At the end of 2022, the government approved a project to build a three-level protection system at 22 substations of NPC Ukrenergo (Resolution No. 1482). On behalf of Mykolaiv region, the relevant work was carried out by the Restoration Service. It signed two secret contracts with the company totaling more than UAH 2.1 billion for the reconstruction of facilities No. 1 and No. 2. The work was supposed to be completed in June 2024, but Prozorro has no data on its completion or extension.

Анна Бальчінос