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Automatically translated version. May contain inaccuracies compared to the original.
Great Robbery: kickbacks on road construction amount to 30% – the former “road king”
The corruption component in construction and repair works on highways in Ukraine amounts to as much as 30%.
This was stated by businessman Amik Amirhanyan, whose companies previously engaged in road construction, in today’s interview with Ecoomic Truth.
Until recently, the interview subject was known only to a narrow circle of people connected with road construction and repair. The general public learned about Araik Amirhanyan three years ago.
In April 2019 year he appeared in the news feeds, having carried out an “attack” on the Odessa office of Ukrautodor. Two months later, employees of the Security Service of Ukraine detained Amirhanyan in the premises of the Antimonopoly Committee. Later other visits by the businessman to Ukrautodor surfaced.
Better known as the “road king,” under the new government the interviewee received another nickname – the “chief tender troll.” And after words came actions.
Under Zelensky, Amirhanyan will be accused of financing actions to overthrow the constitutional order and attempting to seize someone else’s property by fraudulent means in large-scale amounts. And that he offered bribes to officials while demanding money from them.
All these stories ended with personal sanctions imposed on Amirhanyan and most of his companies in April 2021 year. Moreover, he was stripped of citizenship, which forced the businessman to leave Ukraine.
Amirhanyan himself claims that sanctions against him were imposed without basis, and that the criminal cases are backed by Yuri Golik, whom the businessman calls the “gray cardinal” of the “Great Construction.”
“There is this Golik Yuri, he always takes the position ‘my house is on the edge,’ but the biggest enemy in this whole situation is Golik,” Amirhanyan says with some emotion.
In the interview he talks about the shadow economy of the president’s key image project, kickbacks on the “Great Construction,” and the roles of Yuri Golik, Kirill Tymoshenko, Andrey Yermak, and Volodymyr Zelensky.
O the cartel “Big Construction” and its curators
— To begin, explain to the reader who you are and what relation you have to road construction.
— My father with his brothers built roads in Ukraine back in the Soviet times – those were 1960-e years. One could say I have been involved in road construction for 14 years. It runs in our family.
I started in the Odessa region in 2003 year, then we built roads in Odessa. Later we began to develop and work with regional Ukrautodor services on roads of national importance, began receiving contracts, participated in the construction of the Kyiv – Odessa highway.
Then we expanded to many regions: Mykolaiv, Kherson, Ivano-Frankivsk, Lviv, Chernivtsi. Then we entered Vinnytsia. Partially performed works in Poltava and Sumy regions.
At that time we were among the ten largest country-wide construction companies. Of course, funding volumes for construction were not as large as they are now.
With the Odessa Highway Service, which reports to Ukrautodor, we began working when we built the Kyiv – Odessa highway. We won several kilometers of tenders there. Those were 2006-2007 years.
Later, when funding from the state budget was small, we focused on interregional roads. Our company was called “Dorlider.”
— The media call you the “road king.” What other companies do you own?
— First there was “Dorlider.” In 2017 year we bought “Poltavabudcentr,” then created “Mykolaivbudcentr” and “Granit-001.” After that we had “M-bud groups,” Pervomaisky Special Quarry and others. I have a connection to all these companies and have never hidden it. The holding includes 13 companies.
— You said you were once among the ten largest. Can you assess your share in the best year and the results of 2021 year?
— In the past and the year before last they did not give us an opportunity to sign a single contract. This happened after Zelensky came to power with Kubrakov’s team (Alexander Kubrakov, from November 2019 year to May 2021 year headed Ukrautodor – EP). And the volumes of funding before 2017 year and after are not comparable.
— Do you link this to the change of government?
— Yes, as soon as Kubrakov took office. There were rumors that they would supposedly abolish tenders, cut funding, but I did not believe it. And that’s what happened. I became unwelcome after I refused to agree to certain backroom deals and all that.
— The new team believes that on state roads, companies with greater experience should work to avoid unnecessary risks.
— I agree that experienced companies should be involved, but when Kubrakov demands 100% experience, that is unacceptable. There is no country in the world with such a high requirement. Maximum is 10-30%.
When Kubrakov came to Ukroadr, he legislatively pushed through the “Through the knee” Methodological Guidelines for road tenders.
According to them, only companies with experience not lower than the procurement cost (100%), or with positive Ukrautodor feedback on completed works are admitted to tenders.
These reviews Ukrautodor often manipulates, may withdraw their previous positive reviews or blackmail them by not issuing, if you are not loyal to Ukrautodor. These are the so-called “sharp edges” of Ukrautodor, through which they filter out unwanted companies.
These “sharp edges” are often contested at the Antimonopoly Committee. We have much experience satisfying complaints about them, but Ukrautodor often either simply ignores such AMCU decisions, or boldly cancels the auction if an undesired company wins.
Agree: if we have experience working on the Kyiv – Odesa road, why does Ukrautodor think we cannot repair any other road?
— For Ukraine this is the standard story: after a change of power new people latch onto flows. Can you describe how the situation changed, and who benefited the most from this?
— “Avtomahistral-yug” of Alexander Boyko. It includes “Onur” (Turkish company Onur) and other cartel participants.
— How do you explain the success of Boyko’s Autostrada?
— We faced Boyko’s curators. There is Golik Yur, the “gray cardinal” of the “Big Construction.” He always takes the position of “my house is on the edge.”
Golik Yur oversees “Autostrada.” He gave them the “green light” in the Dnipropetrovsk region. When we tried to enter Dnipropetrovsk region back in Petro Oleksiyovych’s times, we became a red rag for him.
— Before the Great Construction, was Boyko notable among road companies?
— To understand, in the last five years Boyko started making asphalt. When we built Kyiv – Odesa, Boyko was working on interchanges. They didn’t even know what color the asphalt was.
— Is Boyko a standalone businessman or is someone backing him?
— I cannot judge whether he is standalone or not. But I know that under Petro Oleksiyovych their “kryshuvali” Pavlenko (Andrey Pavlenko, deputy of the eighth convocation from Poroshenko Bloc, since 2015 year – president of the Ukrainian Football Association – EP) with Golik. Later, when Pavlenko became a “deadbeat pilot,” Golik began shielding them.
Golik now is the gray cardinal, granting them contracts, shielding them, removing competitors, preparing documents for competitors to submit to the National Security and Defense Council to impose sanctions.
On the methods of money transfers, Tymoshenko, Yermak and Zelensky’s roles
— In the context of the “Big Construction” we often hear the phrase “share the margin.” Can you translate this into plain language?
— If we touch the margin issue, then primarily this issue should be handled by NABU, but unfortunately they operate differently.
Imagine: you are a contractor; your victory at the auction is canceled, funding is removed so you come to bow. You contact NABU, and they say: we can’t help you, because we can only take evidence of bribes, of corruption.
That is, if they ask you for money, we are ready to give dyed notes, and when you pass them, we will arrest them. But that is already outdated. Today it’s the era of cryptocurrencies; bitcoin; no one carries real money hand-to-hand. That is the Stone Age.
Power has come IT specialists. These are people who know these cryptocurrency stories better than anyone. They can transfer electronic money and they will not be known by NABU, DBR, or anyone.
— Let me clarify. Do I understand correctly that kickbacks on the Big Construction are now carried out in cryptocurrencies?
— Correct. I have information that today even the SBU receives 0,5% from all tenders for covering road workers. This is received in cryptocurrency.
— What is the role of the Security Service of Ukraine in this issue?
— This body discredited itself back in 2014 year, when we lost Crimea and Donbas, and the SBU failed to anticipate the “little green men.” They then showed they were not really securing anything and still do not.
Their role is simple: sending “letters of happiness” to Ukrautodor that a particular road company is connected to financing of terrorism and cannot be admitted to tenders. Or “hounding” foreign companies wishing to enter the road market, as with the Turkish Fermac.
They work in one team with Ukrautodor. He writes them a letter: “And check this company.” They respond: “Yes, you are right, it is a bad company, with which you cannot work.”
Tell me, please, have you encountered a situation in a market economy where law enforcement interferes with competition? In principle, you could say this body “shields” Ukrautodor and its cartel. They effectively block access of undesirable Ukrautodor companies to the road market.
— At what stage is kickback paid: before the tender, before the start of works, or before the handover of the object?
— There are no fools who pay before the start of works. Accordingly, the money is paid from what is received, and how else?
— Can you estimate the approximate level of “profit” the authorities make on the Big Construction?
— They say they collect somewhere 10% of the volume. Calculate how much money this is from 100 billion hryvnias.
— What is Yuri Golik’s role in this process?
— This person allegedly is responsible for local roads, but he has influence on national roads too. Kubrakov is a marionette controlled by Golik.
— Who else is in the group of curators of the Big Construction?
— Golik, his adviser Varivoda (Oleksiy Varivoda, former head of Ukrautodor in Odessa region) and deputies, head of the budget committee plus Kirill Tymoshenko. I don’t know if Andrey Yermak is involved, but I think he is indispensable.
All these people, this entire delegation.
— Have you heard the deputy Trukhin’s surname in the context of curatorship of the Big Construction or any regional directions?
— No, I haven’t.
— You say that Golik is behind everything. Kirill Tymoshenko also answers to him?
— Golik and Tymoshenko are one and the same, they complement each other. Tymoshenko did not deal with roads, but Golik has some experience; he previously worked as a deputy governor of Dnipropetrovsk region. He knows how to properly divide the money, so he is not a bad advisor.
— That is, Tymoshenko is responsible for the political part, and Golik for the technical?
— Yes, the details about projects are already spoken through Golik.
— Why was Kubrakov moved to the Ministry of Infrastructure from Ukrautodor?
— Probably the president thought he was smart and could lift Ukrzaliznytsia, ports and everything else, so sent him there.
— In Ukrzaliznytsia an analogue of the Big Construction is launched. Will the situation be similar on roads?
— I cannot comment on what has not happened. When it happens, we’ll talk. I am not saying the guy is incapable. Yes, capable, he knows Ukraine’s map, but he doesn’t understand roads.
— You named the main participants. Is it possible that President Zelensky is not aware of what is really happening in the Big Construction?
— I think part of it is fed to the party like a bone to a dog, and the rest is washed by various Goliks, Tymoshenkos, and Kubrakovs with SBU officers. The president is told that nothing is being brought to him or that a ruble was brought, when in fact 10 rubles were. I think the situation is about that.
— Your companies worked in road construction for many years and somehow managed to get by without kickbacks.
— Our companies have not worked anywhere for the last three years.
— You were actively working during Petro Poroshenko’s time, when the industry was supervised by Ihor Kononenko. Was the situation different then?
— When Kononenko began to supervise the industry, we were not given subcontracts. We worked on subcontracts.
— What do kickbacks go to? Is this corruption tied to accumulating capital, or do the funds go to a conditional party treasury?
— I don’t know what they spend the money on. Probably they think about tomorrow.
— It is believed that money from the Big Construction goes to finance the Servants of the People through envelopes.
— Ask them this question. Let them show exactly where and how much money went.
— The media, citing court decisions and official statements, wrote that you, along with armed people, allegedly attacked Odessa and Kyiv road administrations, and the Antimonopoly Committee.
— I’ll explain. I was attacked several times. I have the right to have bodyguards?
Then they paid money to road works for others. I learned through other companies that everyone except us was paid. Then they say: “We will pay him in increments. If he seals off kickbacks, we will pay more.”
I did not like this conversation. I was in Europe (EU – EP), flew in and went to the office. I always had guards nearby – the guys stood in the corridor, waiting.
— Were they armed?
— Yes. I entered the deputy head of the road service in Odessa region, Leshchenko, and asked: “On what basis are you not paying me?”.
He began telling me stories that we had not finished the shoulder yet. Although there were volumes of works that could have been paid, and the same five-six companies were paid.
I said: “Listen, if you are making a wrong move… Give me the accounting and have them pay.” Moreover, the act of completed works had been signed.
Varivoda came in and asked: “What did you decide to do here by force?” I replied that there is a corrupt component here, and we would discuss it in other rooms.
He called the National Guard, we explained the situation. Then they called CORE (a special unit of the National Police). I was taken to the district police station, interrogated and released, understanding that there was no crime. The case was sent to court. We came to seize the building, how? We had been going to that building for 20 years, not seize it, and then suddenly came to seize it?
— What happened at the Kyiv road administration?
— Kyiv saw a situation when Batiyshev (Andrey Batiyev, head of Ukrautodor in 2015-2016 years) was in charge. There was a personnel change. They placed their man in Mykolaiv.
This Mykolaiv colleague, the head of road service, cut the financing from our object and redirected it to other objects. So I wanted to meet him to understand on what basis this was happening.
He told me he was not in the office. We sat in a nearby cafe, had coffee; I saw him go into his office. I stood up behind him. When I went in, they started pushing me out; a scene ensued.
— Do you have free access to the road service building?
— Listen, the road service doors have always been open. The security knows me; I used to go there before Batiyev.
— They said they found knives and traumatic pistols on you. Is that true?
— Listen, they can say anything they want. Let them provide evidence that we had knives or any traumatic items. Are you asking me about entering during Batiyev’s time or Kubrakov’s?
— Tell us about Kubrakov’s time.
— In Kubrakov’s time they shut themselves off from us, hid. I wanted to go up to understand on what basis they increased the rent for the land where our asphalt plant is located.
They did this specifically to cut off our oxygen and prevent participation in tenders. So I wanted to go there and understand on what basis they drive us out.
— What happened in the Antimonopoly Committee?
— In Antimonopoly Committee, I think there was a situation with some organization, but we had nothing to do with it.
— Law enforcement agencies frame these stories as if you and a group of armed people pressured officials to make favorable decisions, extorted money…
— First of all, we did not compel anyone to do anything. And secondly, what favorable decisions could there be for us?
We asked questions. Why do you cancel the tender we won? Why don't you sign a contract with us? Why do you not recognize us as the winner if we have the best price? Why do you cut funding for our objects? Do you think this is pressure from us?
— What do you relate the opening of criminal cases against you to?
— It all began when we tried to enter Dnipropetrovsk region, where Golik was deputy governor. He was afraid to see us win auctions. He did not like that AMCU satisfied our complaints.
He saw us as real competitors and the number one enemy. And when the president entrusted him with such a responsible role in the “Big Construction,” he decided who should be in the cartel and who should not.
Although we did not seek to join that cartel, we did not need it a thousand years. We simply wanted honest auctions, by law, so that we could also obtain a place under the sun for our company. That’s all.
— What is your legal status in the case of treason?
— The case was sent to court.
— Do you think the sanctions against you were imposed without foundation?
— What legal grounds could there be? This mechanism was designed by Golik and another person. They are like animals – I cannot name them differently. I was deprived of citizenship, and a week later – personal sanctions against me and 12 my companies so I could not participate in tenders.
— Why did you decide to speak about this publicly exactly now?
— I was ready earlier, it’s just that there was no time to deal with this, honestly.
— You are not in Ukraine now. Which country are you in?
— I am in Armenia, Yerevan.
— Have people come to you with offers to “solve the issue” peacefully?
— No, they did not come. They understood that this is pointless. We filed lawsuits for all these matters: loss of citizenship, and everything else. But you know that Ukraine has the most humane court in the world. But we are not losing hope, we are preparing more lawsuits to go further to Europe.
— Did you try to settled this issue with someone to avoid public statements in the media?
— I asked my fellow countrymen from Comedy Club to help reach President Zelensky. But then I was told that he is aware of this situation. I thought perhaps someone quietly placed us on this black list when sanctions were imposed. But I think it was deliberate.
— Through whom from Comedy Club did you try to reach Zelensky?
— We reached out to people who communicate with the president’s family, to clarify whether there was a mistake, perhaps a namesake should have gotten there.
They replied that no, it is him who blocked all road tenders for us, does not let us build.
— In reality we did not block anything; we simply offered a price 25-30% lower than competitors. This would have allowed building roads with 25% more. Am I a tender troll? I don’t understand how a head of state can reason this way. Is competition bad?
— You said the president may not be able to oversee everything; he listens to his advisers who report to him.
— It’s obvious he has many problems, he may not oversee everything. But the people around him know very well what they are doing, and it won’t just blow over. If we can bring in a Western expert organization to conduct an independent audit that cannot be influenced by the President’s Office, you will see everything, we will lay all cards on the table.
— After Petro Poroshenko’s departure, those who were called custodians of certain sectors of the economy started having legal problems. From your words, now Golik and Tymoshenko supervise everything. Do you think they will face the same fate if power changes?
— I think there is no corner they can run to in this world. We will fetch them all, bring them here and put them on the witness stand.
We are negotiating with the West to attract an independent expert organization to verify all volumes of work performed on these hundreds of billions, how legal it was, how much money was stolen. Because there are large discrepancies in the figures.
— You speak of artificial inflation of road construction costs?
— Of course, there is additional spending.
— If we take the hypothetical 100 billion hryvnias, how much of that sum really reaches road construction, considering kickbacks and inflated costs?
— Conditionally, 10 there, 10 there and another 10 there. I think that for 30 percent of works could be cheaper. Simply, you see, no financial inspector can determine what we can determine. Only a road worker can compute where money is being stolen on roads.
— And regarding the quality of these roads?
— When we conduct laboratory studies with a Western expert organization, you will get results. For now I cannot say.
— How do you think it will end?
— What can it end with? They are not eternal. In any case it will not pass unpunished, and we will prove our case. We will prove that inside Ukraine there are cliques, that it is not ready to go to Europe, that corruption in Ukraine has become even bigger than before.
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