A money-laundering scheme was uncovered in the Odesa region involving the security of a power substation

Law enforcement officials are investigating the possible embezzlement of funds during the construction of protective structures for a substation in the Odesa region. Of the nearly 49 million hryvnias in advance payments, the contractor used about 12 million hryvnias, while the remainder, according to investigators, may have been converted to cash through an affiliated company.

The Center for Public Investigations examined the details of the case.

The case involves a contract between the Odesa Regional Infrastructure Restoration and Development Service and DBS Trade LLC worth 58.7 million hryvnias. In December 2025, the company received two advance payments—18.18 and 31.24 million hryvnias. The work was to be completed by March 1, 2026.

According to the investigation, the contractor completed about 40% of the planned work, spending approximately 12 million hryvnias in the process. The contractor was required to either use the remainder of the advance payment for its intended purpose or return it by March 31. Instead, the work ceased, and company representatives attributed this to a lack of funds.

Investigators believe that part of the budget funds may have been converted to cash through Trans-Bud-Logistic LLC. According to their information, fictitious deliveries of goods and services may have been used for this purpose.

In late August, law enforcement officers conducted a search of the accountant’s office at DBS Trade LLC and seized documents related to the company’s operations as well as a cell phone.

According to the YouControl analytical system, DBS Trade LLC was registered in Kyiv in 2022. Oleg Chervonyi is the company’s director and founder. The company participated in only one tender—specifically, for the reconstruction of a substation—and the contract amount was 49.4 million hryvnias, which corresponds to the amount of the advance payment received.

The company was also involved in another legal dispute. Representatives of Budspetsmechanizatsiya LLC stated that after renting specialized equipment, DBS Trade owed 1.47 million hryvnias. 

Another company that investigators link to the possible embezzlement of funds, Trans-Bud-Logistik LLC, was registered in Kyiv in 2024. This company is also mentioned in another criminal case concerning possible schemes involving the procurement of modular concrete blocks.

As reported by Intent, in June, the heads of two companies in Odesa were acquitted of charges that they had inflated the cost of transporting equipment for substations and thereby embezzled budget funds.

Анна Літман