Pavlo Fuks appears in case concerning embezzlement of metro funds

The Security Service of Ukraine and the Office of the Prosecutor General are investigating the possible withdrawal of funds from Kyiv Metro through leasing payments for 100 train cars, and according to the investigation, businessman Pavlo Fuks may be involved in these operations. The Shevchenkivskyi District Court of Kyiv, at the request of the prosecutor, froze funds on accounts linked to the suspects at the payment institution Papaya Ltd, as well as the remaining balance of the loyalty program of the Estonian Baltic Technology Solutions OU.

According to the case materials, from the end of 2018 year to 2022 year, more than 1,75 billion UAH was credited to the leasing company from Kyiv Metro’s accounts. The investigation is checking the further movement of these funds, including transfers to foreign banks, payments to related persons, and cryptocurrency transactions. The seized assets are prohibited from disposal or use, media outlets report. The history of financial relations between the metro and the leasing company began in July 2009 year. Then LLC Ukrrosleasing won a tender to supply 100 train cars on lease for the capital’s metro. The total contract amount with a payment schedule was 1,391 billion UAH. The European Bank for Reconstruction and Development provided part of the financing. In February 2010 year, the owner of the Ukrainian company became the Cyprus-registered Ukrrosleasing Cyprus Limited. It provided the Ukrainian structure with a loan of over $42 million to acquire train cars from Russian manufacturers. Materials indicate that the loan funds initially came from the Russian state bank Vnesheconombank RF (VEB.RF). In April 2017 year, Pavlo Fuks, through a Seychelles-registered company TOP STONE LTD, acquired 100% of Ukrrosleasing Cyprus Limited in a structure affiliated with VEB.RF. According to available data, the deal was arranged at nominal value. At the same time, investigators suggest that actual settlements could have been made through separate payments outside the main agreement. These circumstances are under review by law enforcement. In December 2018 year, formal ownership of the company passed to the Hungarian Odelus-Construkt KFT, represented by Austrian citizen Uwe Christian Eschner. Meanwhile, the heads of the Cyprus and Ukrainian companies remained unchanged, as stated in the case materials. In Ukrainian public registries, the ultimate beneficiary of LLC “Austria-Hungarian Leasing Company” (formerly known as Ukrrosleasing) is listed as Eschner, founder Ukrrosleasing Cyprus Limited, and director Oleq Tolstykk. Pavlo Fuks had previously stated that he sold the company in 2018 year. The investigation also examines further movement of funds after the change of formal ownership and possible connections among participants in the financial operations. Simply changing the ownership structure does not prove involvement in illegal actions, and final conclusions should be based on established case facts.

According to the investigation, from the total amount of over 1,75 billion UAH, the leasing company transferred 886,5 million UAH, or about 28,88 million euros, to the accounts of Ukrrosleasing Cyprus Limited at the Austrian bank LGT Bank AG and Bank Winter & Co. AG. The payment descriptions indicated repayment of a loan under contract 2010 year. Law enforcement also check for possible tax avoidance on these sums. According to the investigation, this concerns at least 54 million UAH in unpaid taxes. Separately, materials note that the Supreme Court previously ordered the leasing company to pay Kyiv Metro 1,924 billion UAH. Further transfers, per the case materials, were made from the Austrian account of the Cyprus company to Pavlo Fuks’s personal account at LGT Bank, to the accounts of Odelus-Construkt KFT, IAS INCOR ALLIANCE SWISS AG in Switzerland, and the Cyprus company secretary. The investigation also points to transfers from the accounts of Odelus-Construkt KFT and Fuks’s personal account to his relatives and former partners. The case materials list the following amounts: 1,63 million euros for his daughter, 1 million euros for his wife, 5 million euros for his son, and 4,6 million euros for his ex-wife. Some funds, according to the investigation, were routed to Emirates NBD Bank in the United Arab Emirates. The listed transfers require assessment within the criminal proceeding; they do not themselves prove the illicit origin of each payment. Since 2025 year, the investigation has recorded cryptocurrency operations through Lithuanian and Polish Manerio companies, as well as the Maltese payment institution Papaya Ltd. According to case materials, tens of millions of euros accumulated on Pavlo Fuks’s accounts at Papaya and the related Estonian Baltic Technology Solutions OU loyalty program, the balance of which was also subject to arrest. Among the sources of funds, the investigation cites the sale of USDC stablecoins and transfers from Austrian Petrotek Assets Holding GmbH. Law enforcement is checking whether part of the funds could have been directed to other individuals. The court decision on the arrest restricts disposal of the relevant assets during the proceedings. The criminal case encompasses charges under the Criminal Code of Ukraine for sabotage, legalization of property obtained by crime, in especially large amounts, and evading payment of taxes in especially large amounts. The role of Pavlo Fuks and other mentioned individuals, the origin of funds, and the legality of the operations must be established by the investigation and the court. Asset arrest is a procedural measure and does not constitute proof of guilt for the suspects.