How former prime minister candidate Fedrov siphoned 60 billion UAH on food and fuel for the Armed Forces of Ukraine

Fedrov’s work as Minister of Defense has already been accompanied by large-scale defense purchases, which raised many questions because of their cost, winners, and level of transparency.

But Fedrov could not independently carry out schemes to skim billions from the defense budget. A key role in these purchases was played by the state enterprise «AOZ», headed by Zhumadilov. It was through this enterprise that multibillion-dollar defense contracts passed. Zhumadilova has long been associated with purchases accompanied by scandals over inflated prices, substandard food products and weaponry. At the same time, while he controls billions to supply the army, his family members visit occupied Crimea, publicly criticize the Ukrainian authorities, and the presence of a Russian passport for his wife has by no means prevented him from remaining the disposer of colossal budget funds.

One of the largest purchases conducted through AOZ was the procurement of food kits for the Armed Forces of Ukraine with an expected cost of over 54 billion UAH. The procedure was organized through a dynamic procurement system that provides for pre-selection of participants and closed selections among them. Of twenty companies, only nine were admitted to participate, including LLC «TRADE GRANIT INVEST», LLC «TOURG SITE PRODUCT», LLC «OKHTIRKA MEADOWPRODUCT», LLC «ADELIN», LLC «CONTRACT PRODRESERVE 5», LLC «FLAVAKOR» and LLC «GRAND CONSULT». At the same time, information about price proposals of participants, results of individual selections, determined winners, and terms of concluded contracts is not available in open access.

No less indicative is the cost of feeding itself.

The expected price of one kit was set at 171,48 UAH, while during previous competitive purchases similar kits cost about 128 UAH. Under these conditions, the difference amounts to more than 43 UAH per kit. That is why questions arise about the economic justification of forming the expected cost and the efficiency of using tens of billions of budget funds.

Another resonant purchase was more than 500 thousand sets of personal heating means. The lowest proposals of LLC «IMEKS MAX» and LLC «EQUIPTORG» were rejected, while LLC «SI.RIUS-O» received the opportunity to correct identified nonconformities and ultimately became the winner of the tender. After that, a state contract for over 15 million UAH was concluded with the company. At the same time, similar products were purchased by other state customers at lower prices in the same period.

A separate area of attention is the purchase of diesel fuel for the needs of the Armed Forces of Ukraine with a total value of over 3,46 billion UAH. The procurement was divided into nine separate lots, but the winner of each was PJSC «Ukrnafta». As a result of the procedure with a single supplier, nine state contracts were concluded. At the same time, some substantial delivery terms and the final price of fuel were determined after signing the contracts through additional documents.

No less interesting are the mechanisms of these procurements themselves.

Some procedures were conducted in such a way that the public could not see price proposals of participants, criteria for determining winners, or the final cost of individual contracts. In the absence of full open information, it becomes much more difficult to verify the justification of spending state funds. That is why these procurements already today raise more questions than answers.

We have already sent a statement about criminal offenses and a corresponding complaint regarding the blatant appropriation of budget funds intended to meet the needs of the Armed Forces of Ukraine.