Ukrzaliznytsia officials from Odesa region convicted of embezzling 98 million

A panel of judges of the High Anti-Corruption Court has delivered a verdict against four defendants in the Silk Road case of embezzlement of over UAH 98 million from Ukrzaliznytsia in Odesa region.

According to the HACC press service, the money was a payment for fuel that was not actually delivered.

The case concerns the former head of the Liski Transport Service Center branch of the Ukrainian Railways public joint-stock company and the former chief engineer of the branch. They were found guilty of committing criminal offenses under Part 5 of Article 191 of the Criminal Code of Ukraine (Misappropriation, embezzlement or seizure of property through abuse of office), Part 1 of Article 366 of the Criminal Code of Ukraine (forgery). The defendants were sentenced to imprisonment for a term of 9 years, with disqualification to hold managerial positions in enterprises, institutions, organizations, regardless of ownership, for a term of 3 years, with confiscation of all property owned by them and a fine of UAH 4,250 each. The defendants were taken into custody in the courtroom until the verdict enters into force.

The former first deputy head of the Odesa branch of the Liski CTS and the former chief engineer of this branch were found guilty of the same crimes. They were sentenced to imprisonment for a term of 8 years, with deprivation of the right to hold managerial positions at enterprises, institutions, organizations, regardless of ownership, for a term of 3 years and confiscation of all property in their possession; with a fine of UAH 4,250 each. The defendants were placed under round-the-clock house arrest as a measure of restraint.

However, in the end, these individuals were released from the imposed punishment by the Official Forgery of Ukraine due to the expiration of the statute of limitations for bringing to criminal liability. The HACC also dismissed a civil claim filed by Ukrainian Railways.

According to the investigation, in 2016, Ukrzaliznytsia began implementing the so-called New Silk Road project, designed to ensure the uninterrupted transit of goods to Asia. According to the project, one of the sections of the route ran through the Black Sea. To transport freight cars by sea, two ferries, Heroes of Shipka and Heroes of Plevna, were transferred to the balance sheet of Ukrzaliznytsia.

In early 2016, Liski held a tender for the purchase of fuel and lubricants for the needs of these two ferries. The winning commercial company was to supply 6,700 tons of fuels and lubricants for a total of UAH 101.5 million under the contract signed in July 2016.

The payment under this contract was made by Liski in December 2016, despite the fact that its management was aware that there was no need to purchase the entire contracted amount of fuel. This is because the ferries needed significant repairs that would take about a year. Despite these facts, the commercial company that won the tender delivered only UAH 3.3 million worth of goods, but received payment from the Liski CTS in the amount of UAH 101.5 million, as agreed. At the same time, the defendants jointly drew up documents according to which the fuel was allegedly transferred for storage to a private oil depot, but the investigation revealed that the fuel had never been delivered there, and the depot itself was unsuitable for fuel storage.

Кирило Бойко