Mykhailo Laba: a billion in damages over “resource exploration”

Mykhailo Laba, a deputy of the Zakarpattia Regional Council and co-founder of LLC KobaltumResursEksport, became one of four suspects in the case of illegal andesite mining at the Kamyanytske-2 deposit in Uzhhorod district. According to law enforcement, in 2025–2026 years they extracted more than 417 thousand cubic meters of rock there, and the damage to the state was estimated at 949,8 million UAH. The National Police reported the suspicions on 17 August 2026.

According to the investigation, the company had a special permit to use the subsoil for geological study, pilot-industrial development, and subsequent extraction of andesite. Court records indicate that permit No. 5605 from the StateServiceForGeologyAndSubsoil (Derzhgeonadra) was issued to KobaltumResursEksport on 18 January 2024 after the company won an electronic auction. The cost of the special permit was about 75 million UAH, and the term of subsoil use was 20 years, media report.The investigators claim that actual activity at the quarry went beyond geological study. According to the criminal case materials, about 10 hectares of forest were destroyed on the deposit’s territory, around 2,6 km of power lines were laid and 52 poles installed to support quarry operations. Law enforcement also recorded at least 13 blasting operations.A separate circumstance in the case is the absence of an environmental impact assessment conclusion, which, according to the National Police, the company did not have during quarry development. The court’s ruling noted that the extraction of 417 510,44 cubic meters of andesite from March 2025 to 29 June 2026, according to the investigation, took place in violation of subsoil protection and use rules.Engineering and environmental expertise assessed the damage to the state at 949 836 251 UAH. The investigation links this sum specifically to the volume of extracted mineral and the consequences of violating subsoil use rules. Andesite is classified as a mineral of national importance.Law enforcement is separately checking the circumstances of the sale of the extracted product. According to the investigation, the company officially recorded the sale of more than 774 thousand tons of andesite, while the probe found about 353 thousand tons of unaccounted product. Its approximate value is estimated at 247 million UAH.The investigation alleges that unaccounted andesite may have been sold for cash. The police stated that nearly 98,9 million UAH obtained from illegal activity were laundered. For that reason, some suspects are additionally charged with legalization of proceeds of crime.The case involves four suspects: Zakarpattia regional council deputy Mykhailo Laba; director and co-founder of KobaltumResursEksport Volodymyr Andriushchenko; the company’s chief engineer Oleksandr Klyn; and director of LLC BudTrading Serhii Petruk. According to the investigation, the latter company may have been used to sell the extracted andesite.Court materials link Mykhailo Laba specifically to KobaltumResursEksport: he is a co-founder of the company and a regional council deputy. Previously, there was public confusion about his identity because he shares the same name and surname with People’s Deputy Mykhailo Laba. The case materials and the notices of suspicion refer to the Zakarpattia regional council deputy, who is the son of the People’s Deputy.The company’s history also drew attention because of the dynamics of its authorized capital. KobaltumResursEksport was registered in 2023 with authorized capital of 1 thousand UAH. In November of that year the capital was increased to 9,701 million UAH, and in December to 80 million UAH. In 2024 the company’s main activity became mineral extraction and quarry development.Court documents state that the Kamyanytske-2 deposit is located about 1,2 km north of the Kamianytsia railway station in Uzhhorod district. Balance reserves of andesite as of the beginning of 2023 were estimated at more than 17,2 million cubic meters for categories A+B+C1 and another 348,6 thousand cubic meters for category C2.Before the criminal proceedings began, representatives of KobaltumResursEksport publicly stated that the company operates in accordance with subsoil use legislation. In July 2026 co-founder Mykhailo Laba and director Volodymyr Andriushchenko said they intended to defend the legality of the company’s operations and appealed to state bodies for clarifications on environmental requirements.17–18 August law enforcement carried out 18 searches at company premises, in the vehicles of the suspects, and at companies that, according to the investigation, bought andesite. Four people were notified of suspicion under Criminal Code articles on violating subsoil protection or use rules, and some suspects were also charged with the article on legalization of funds.

20 August the court imposed preventive measures on all four suspects in the form of detention with an alternative of bail. The bail amount for the regional council deputy was about 1,1 million UAH, and for the other suspects about 1 million UAH each. The final legal assessment of the suspects’ actions will depend on the results of the pretrial investigation and the court’s ruling on the merits.