Artem Zakharov and the embezzlement of funds in Odesa reconstruction: what is known

In August 2025, the National Police in the Odesa region opened an investigation into possible misappropriation of public funds during the repair and reconstruction of residential buildings in Odesa damaged by shelling. The case materials mention subcontracting companies, female employees of a construction firm who registered as individual entrepreneurs (FOP), and former deputy director of the city department Artem Zakharov. According to Suspilne’s investigation, since 2024 LLC “Stroy-Invest-Group-7” received public contracts worth 114 million UAH, and entrepreneurs linked to the company signed contracts for millions more.

According to the investigative journalism report, seven businesses figure in the criminal proceedings and are described in court rulings as affiliated. Five of them have operated in the public procurement market for a long time, while the investigation paid particular attention to LLC “NORT TEK+” and LLC “Stroy-Invest-Group-7.” Law enforcement alleges that, during the execution of construction contracts, the volumes of work and the cost of materials may have been inflated, and false data may have been entered into certificates of completed work, media report. The investigation also looked into the circumstances of LLC “NORT TEK+.” According to the case materials, the company had no employees, and its director and official owner Ihor Rosputko, law enforcement asserts, did not know he was managing the company. He is currently listed as a witness in the case. Until 2024, LLC “Stroy-Invest-Group-7” mostly carried out small orders, after which the volume of its public contracts grew. Among the largest contracts was the restoration of an apartment building on Otamana Holovatoho Street, 92 in Odesa, costing over 21 million UAH. The company also took part in rebuilding a building on Shevchenka Avenue, 8-V. Journalists established that at the end of 2024, employees of “Stroy-Invest-Group-7” Valentyna Parpulanska and Maryna Taranenko registered as FOPs and began receiving contracts from the Department of Municipal Economy of the Odesa City Council. Both ceased entrepreneurial activity in 9 September 2026. Parpulanska signed eight contracts totaling nearly 8 million UAH. Two contracts concerned the restoration of houses damaged by Russian attacks: on Pastera Street, 52 for 1,2 million UAH and in Anatara Lane, 13/1 for 1,1 million UAH. According to the Spending portal, in 2025 she was paid more than 5,5 million UAH for repairs of six buildings. At the time the investigation was published, the contract for the Anatara Lane site remained active, but the entrepreneur had not received funds under it. At the same time, Parpulanska continued to appear in procurement documents as the contact person for “Stroy-Invest-Group-7.” Journalists suggested that she may have worked at the company as an assistant and the director’s secretary. When asked about construction experience, contract performance, her FOP registration, and the criminal case, Parpulanska did not respond. Taranenko, who worked at the firm as a forewoman, signed 12 contracts with the city department worth over 10 million UAH. Two of them concerned restoration of buildings on Shevchenka Avenue, 8/3, and in Hospitálnyi Lane, 2. The values of these contracts were 1,3 million UAH and 1,2 million UAH, respectively. According to the investigation, during execution of at least one of the contracts the volumes of work and cost of materials may have been inflated. Taranenko refused to answer journalists’ questions about her entrepreneurial activity and her mention in the case. Another entrepreneur linked to the company is Serhii Vasalantiev, who was its co-owner in 2018–2023. At the end of 2024 he registered as an FOP and then began receiving orders from the city department. In total, seven contracts were signed with him for over 8 million UAH. One of them envisages restoration of the building on Oleksandra Kutuzakiia Street, 62, costing more than 1 million UAH. Work must be completed by 2027.

Despite leaving the company’s ownership, Vasalantiev in 2025 commented on the progress of the reconstruction of the site being repaired by “Stroy-Invest-Group-7.” He told Suspilne that he now works only as an entrepreneur and that he gave comments about the company’s works at the request of other people. He declined to answer questions about having his own employees and equipment and about the criminal investigation. The case materials also mention the company’s accountant, who, according to the investigation, may have handled financial and tax reporting for some FOPs and conducted bank transactions with funds received under public contracts. During a search of her workplace, law enforcement seized a laptop. In “Stroy-Invest-Group-7” documents, Larisa Riabova is listed as the accountant from 2020 until February 2025. She told journalists she still works at the company but declined to comment on the criminal case. Vladyslava Rudyka, lawyer and head of the “Transparent and Accountable Reconstruction” direction at the Anti-Corruption Center “Mezha,” explained that registering employees as FOPs can be used for tax optimization. In her view, dividing activities among entrepreneurs on the simplified tax system can reduce tax burdens and make it harder to track the movement of funds. Among possible signs of relatedness of entrepreneurs she named shared employees, equipment, accounting, document templates, and filing reports from the same IP address. At the same time, the presence of such signs alone does not prove wrongdoing. According to YouControl, “Stroy-Invest-Group-7” was founded in Odesa in 2018 by Pavlo Zavala and Dmytro Romaniuk. Today the sole owner and director of the company is Romaniuk. Journalists found signs of a possible informal connection between Romaniuk and Artem Zakharov, who until May 2026 was deputy director of the Department of Municipal Economy of the Odesa City Council. For example, Romaniuk’s number in phone directories was labeled “Zakharov’s contractor.” These entries do not confirm any agreements between them. Romaniuk told Suspilne that some company employees work part-time and may run their own businesses simultaneously. He explained employees’ FOP registration as a way to gain experience and increase qualifications. Romaniuk confirmed he knew Zakharov but described their relationship as professional and denied that the official lobbied for the company’s interests or for entrepreneurs associated with it. He also denied possible inflation of material costs and work volumes, stressing that the client’s technical supervision checks the completed work. Court rulings mention a city official who, according to the investigation, could have coordinated the distribution of contracts and the involvement of controlled FOPs. References to the position and the Volvo XC90 vehicle that he declared point to possible Zakharov involvement. In May 2026 Zakharov headed the municipal enterprise “Heat Supply of the City of Odesa.” In February that year law enforcement searched his residence and seized a mobile phone and rough notes. Among the persons involved in the case was former Odesa city council deputy Oleksandr Ivanytskyi, whom journalists call a friend of former mayor Hennadii Trukhanov. In 2026 law enforcement searched Ivanytskyi and seized a phone. In April he was found dead in a car; police considered suicide as a possibility. According to the investigation, Ivanytskyi could have influenced the formation of the city budget in the housing and communal services sphere and the appointment of officials. These claims are the investigation’s assertions, not facts established by a court. Zakharov called the claims about him in the case materials slander and said he is ready to comment on the case after concrete circumstances are established or a decision is made. He did not answer Suspilne’s written questions. According to the Main Directorate of the National Police in the Odesa region, the investigation is ongoing, and as of the editorial response no person has been notified of suspicion.