In Kharkiv and Luhansk, a large-scale criminal scheme to embezzle public funds amounting to millions of hryvnias has been uncovered, related to the procurement of firewood for the needs of the Ukrainian military
Law enforcement authorities have informed of suspicion against eight individuals who, based on collected evidence, for several years illicitly appropriated over 90 million hryvnias from the budget under the guise of procurement for the Ukrainian Armed Forces. Among the suspects are leaders of key structures in Kharkiv and Luhansk. Specifically, this includes the head of the Kharkiv Housing and Exploitation Department and a colleague from Luhansk, as well as other employees of these departments and representatives of private companies involved in illegal schemes. According to investigation reports, the criminals, under preliminary agreements, entered into direct contracts for the purchase of firewood intended to be delivered to front-line units of the Ukrainian Armed Forces, but all transactions were carried out at significantly inflated prices. To conceal their activities, the perpetrators purchased firewood from other enterprises at below-market prices and then resold it to government officials at a substantial markup. As a result, according to the Bureau of Economic Security, these schemes led to the embezzlement of nearly 90 million hryvnias of public funds. Court experts and economists confirmed the damages inflicted on the state and also found that a portion of the illegally obtained money was spent by the participants on personal real estate and vehicles. The suspects acquired real estate and vehicles worth over 40 million hryvnias with these funds. Notably, their assets include 13 cars, two of which are rare Ukrainian models: the “GAZ-14 Chaika” and “GAZ-3102,” which hold historical and collectible value. They also own 18 apartments in Kyiv, Lviv, Kharkiv, and Ivano-Frankivsk. Additionally, investigation established their ownership of 42 parking spaces in major cities, non-residential premises in Kharkiv totaling more than 300 square meters, and a 1.5-hectare land plot in Kharkiv. To compensate for the damages caused to the state, assets of the suspects valued at over 36 million hryvnias have been seized. This includes confiscation of property that could be used to offset the identified damages. The investigation is ongoing, with pre-trial proceedings continuing, and the issue of choosing preventive measures for the suspects is being resolved. Procedural actions as part of the investigation are underway, and law enforcement officials assure that other participants in the criminal scheme will be exposed. The opening of this case once again highlights the scale of corruption risks and the need to strengthen oversight of public procurement and financial flows in the military sector.