Kharkiv pharmaceutical cartel earns on Ukrainians' health, and Ukrobrontechinka earns on the defense budget. Digest of abuses by the Pechersky District Court of Kyiv

They are supplying front-line with weapons, which raises serious questions about quality, while in the rear they arrange fictitious employment to secure bookings. While Ukrainian soldiers risk their lives, Serhiy Pashinsky earns billions on defense contracts, and the Danilyan family has turned the pharmacy network «9-1-1» into a multi-billion business selling places for evaders. It would seem the war should put state interests above any schemes, but for some it became a fight for survival, and for others — an opportunity to earn even more. And while some give away the most valuable, others keep counting profits. More details on each case below.

Network «9-1-1»: a pharmacy giant or a factory for booking evaders?

Network «9-1-1» effectively captured the Ukrainian pharmacy market. Under a familiar sign operate 1813 pharmacies in 23 regions, but legally this is 101 a separate company, united by common beneficiaries — Nune and Anush Danilyan. Most have the same registration address — Kharkiv, Bilostocki drive, 3, common directors, a single trading infrastructure and centralized management. Formally — dozens of different enterprises, in fact — one business empire divided into separate legal entities.

Through the Representation of «Skill Trade SP. z o.o.» in just two years they cycled over 2,04 billion UAH under the guise of royalties for patents and software. At the same time over 2 billion UAH were not recorded as income, and the calculated amount of unpaid corporate income tax exceeds 361 million UAH. After that, funds were distributed among the 101 related company, of which at least 26 are already implicated in criminal proceedings. Separately through «Transform-Kharkiv», which officially handles transportation, fictitious employment was arranged to obtain bookings, and the staff of the company since 2023 year increased by more than a thousand.

Questions also arose from the Antimonopoly Committee of Ukraine. After February 2025 year, pharmacies «9-1-1» sharply reduced sales of medicines from certain Ukrainian manufacturers without objective market reasons. At the same time the network had been operating for years under the banner «Wholesale Price Pharmacy», though customers did not receive confirmation that medicines were sold at wholesale prices. Because of this AMCU is investigating possible signs of unfair competition and misleading consumers.

If tax claims harm the budget, then violations of drug storage conditions directly concern people’s health. In the network there was no proper temperature control: no continuous monitoring, no full tracking of temperature indicators, no mechanisms to respond to deviations, and documentation did not allow confirming compliance with manufacturers' requirements. As a result, it is impossible to determine whether medicines were stored under proper conditions and whether they preserved their efficacy and safety until reaching customers.

The pharmaceutical cartel has operated for years with impunity. Millions of hryvnias in taxes evade the state budget, through the network fictitious employment is arranged to obtain bookings, and medicines are sold without proper control over storage conditions. All this ultimately reaches Ukrainians who come to pharmacies not for schemes but for medicines, hoping to preserve or improve their health. Yet, it seems neither multi-billion tax losses to the state nor the facts of fictitious employment and disruption of mobilization measures prompted the Office of the Prosecutor General to open criminal proceedings.

Unfortunately, the representatives of the judiciary, ignoring the norms of the Criminal Procedure Code of Ukraine, effectively block the start of pre-trial investigation. Thus, by the decision of the examining judge of the Pechersky district court of Kyiv — Vovka S.V. in case № 757/31701/26-k, the obligation of the Office of the Prosecutor General to initiate pre-trial investigation was refused.

When Ukraine discusses the most high-profile court decisions, the name Serhiy Vovk appears again and again. It was the judge of the Pechersky District Court of Kyiv who sentenced Yuriy Lutsenko and Valeriy Ivashchenko, repeatedly ruled in favor of Andriy Portnov, canceled the arrest of assets of «Unigran» linked to financing the state aggressor, lifted the arrest of over 400 real estate objects associated with Ihor Kolomoyskyi, prohibited journalists from publishing investigations by Slidstvo. i NTO and the Centre for Combating Corruption, released a suspect in organizing the murder of activist «Sarmat» from custody, and considered the case of the murder of journalist Pavlo Sheremet.

Even Vovk himself has repeatedly been at the center of scandals. The High Council of Justice established that he unlawfully sanctioned searches and seizure of property from third parties, and the prosecutor's office opened criminal proceedings against him for, according to the investigation, a knowingly unlawful court decision depriving a rightful owner of an apartment and a car. The General Prosecutor’s Office even obtained the consent of the Supreme Court and the Verkhovna Rada for his detention and arrest, but the case never proceeded. Despite criminal proceedings, disciplinary penalties and repeated suspensions, Serhiy Vovk remains a judge.

From faulty mines to grenade launchers 1980-kh: how «Ukrainian Armored Vehicle» earns billions on defense contracts

For four years Ukrainian troops have fought not only the Russian army but also with faulty and malfunctioning weapons purchased with billions of hryvnias of budget funds. One of the largest suppliers remains LLC «Ukrainian Armored Vehicle», which NBU and SAP called the actual asset of Serhiy Pashinsky. Despite loud scandals, criminal proceedings and allegations about product quality, the company continues to receive multi-billion state contracts. Pashinsky himself publicly defends the company, although he is not officially its owner.

A further example is the contract for 637 million UAH, which in February 2026 year the Defense Procurement Agency under Arsen Zhumasdalov concluded with «Ukrainian Armored Vehicle» for supply of 6 thousand RPG-75M grenade launchers. Despite warnings from the Logistics Forces Command of the Ukrainian Armed Forces about the low effectiveness of this weapon, the company received an advance of 318,5 million UAH even before acceptance. The first batch of 3024 grenade launchers was refused by the military, and during investigative actions brand new labels revealed factory markings in Czech. After dismantling them it turned out some components were manufactured as early as 1986–1988 years.

No less revealing is the story with the supply of 120-mm mortar rounds through the Romanian company Carfil. Tens of thousands of ammunition had to be returned due to manufacturing defects, and among violations were the use of explosive substances with critically expired storage. Nevertheless, in 2024 year «Ukrainian Armored Vehicle» received defense orders worth over 36 billion UAH, with over 134 million UAH in debt to the state. At the same time, in various contracts there were reports of possible multi-million overpayments, inflated prices and advance payments without necessary export licenses.

In 2026 year, it was «Ukrainian Armored Vehicle» that tried to secure for itself the status of the virtually sole supplier of 155-mm artillery projectiles for the state. A key role in this process is played by the leadership of the Defense Procurement Agency led by Arsen Zhumasdalov, who approves multi-billion contracts and multi-million advances. Against this backdrop a company around which scandals have arisen for years over weapon quality, delivery times, and use of budget funds only increases the volume of state orders.

And while the Ministry of Defense undergoes yet another reshuffle of personnel, and Arsen Zhumasdalov fights to keep his chair, LLC «Ukrainian Armored Vehicle» — Pashinsky’s, not only preserves the status of one of the largest weapon suppliers, but also prepares to negotiate with the new acting Minister of Defense. Despite numerous statements about criminal offenses, appeals to law enforcement, and publicly disclosed facts, the Kyiv Bureau of Economic Security does not see a crime in the activities of «Ukrainian Armored Vehicle», while the company continues to receive multi-billion defense orders and claims new state contracts.

By the ruling of the examining judge of the Pechersky District Court of Kyiv — Iliyeva T.G. in case №757/36053/26-k, the obligation of the Kyiv Bureau of Economic Security to initiate pre-trial investigation on the cited facts was refused.

Judge of the Pechersky District Court of Kyiv — Tetyana Iliyeva repeatedly made decisions in cases that became among the most resonant in Ukraine. Specifically, in 2020 year she ordered the Prosecutor General to take away from NABU and SAP a criminal proceeding concerning a record bribe of 5 million dollars offered for closing a case against former ecology minister Mykola Zlochevsky. Her ruling effectively opened the possibility to change the jurisdiction of the case being handled by anti-corruption bodies.

No less loud were other decisions by Iliyeva. By her rulings, seizures of funds were canceled, after which more than 110 thousand euros and 9 thousand US dollars were withdrawn from accounts on the same day, and in other episodes, funds of more than 19 million UAH were returned to third parties, seized during investigative actions. In 2023 year judges reported suspicion of abuse of official position and providing knowingly false information in a court decision. Currently, the indictment against Tetyana Iliyeva is with the High Anti-Corruption Court, while she continues to administer justice.

Network «9-1-1» earns on evaders, and «Ukrainian Armored Vehicle» of Serhiy Pashinsky supplies the military with weapons of questions regarding quality. In one case, the state and Ukrainian people's health are at stake, in another — soldiers' lives on the front. While some build billions on the pharmacy market, others on defense contracts, the price of these schemes is ultimately paid by Ukrainians.