Schemes in defense procurement revealed in Odesa

The Southern Housing and Maintenance Department in Odesa was at the center of an investigation for purchasing firewood for the army at prices several times higher than market prices. Although the documents show that the wood was allegedly received and paid for, inspections of the warehouses showed its complete absence.

This was reported by the Center for Public Investigations.

According to the investigation, officials of the state institution may have abused their official position during procurement for the Armed Forces of Ukraine. These are tenders for the supply of firewood announced in the fall of 2025 through the Prozorro system.

In particular, on November 3, the department announced the purchase of hardwood with an expected value of UAH 10.5 million including VAT, with delivery to Vinnytsia by December 10. On November 21, an agreement was signed with a private entrepreneur for more than UAH 10.45 million for 3000 cubic meters. At the same time, the market price of similar products with delivery was approximately UAH 1200-1400 per cubic meter excluding VAT, which is significantly less than the price stipulated in the agreement.

The situation was similar with other tenders. On November 6, the procurement of second-grade wood (pine and alder) was announced for UAH 5.76 million, with a contract for 1800 cubic meters, and the delivery time was later extended. On the same day, an agreement was signed with Horeka Solutions LLC for the supply of timber - initially for 6,500 cubic meters and over UAH 20.8 million, but later the volume was reduced to 1,900 cubic meters and the amount to UAH 6.07 million. Nevertheless, the price per cubic meter remained significantly higher than the market price (about UAH 1000-1200).

In October-November, a number of contracts for wood of the first and second groups were also signed at prices of UAH 3195-3485 per cubic meter, which is more than twice the market average. Most of the contracts were amended with additional agreements to change the delivery time or the total price.

Acceptance of the timber was documented by acts signed by the management and members of the relevant commission. However, during the pre-trial investigation, it turned out that as of April 7, 2026, the goods had not actually been delivered, although the storage period had already expired. In early April, law enforcement officers checked the addresses of the warehouses and found that there was no wood there, and that it had never been stored at these locations.

Investigators assume that this is a scheme to misappropriate budget funds through manipulation of tenders and artificially inflated prices. They see a systematic approach to the defendants' actions: under the same market conditions, contracts were concluded with different suppliers, but at a significantly inflated cost, which could have led to millions of dollars in budget losses.

During the searches, law enforcement officers seized documents that could confirm the violations. The prosecutor's office requested that these materials be seized to preserve them as evidence. Despite the objections of the KEA representative, the court upheld the investigators' position, recognizing the investigation as justified.

Currently, law enforcement officers continue to establish all the circumstances of the case, including the role of officials and possible connections between bidders.

In March, Odesa law enforcement officers also uncovered an alleged corruption scheme in the procurement of fuel wood for the needs of the Armed Forces of Ukraine. According to the investigation, officials of the Southern Housing and Maintenance Department and entrepreneurs who supplied firewood may be involved.

Анна Бальчінос