Conflict Worth Hundreds of Millions: How Shkil and Fedorov Clashed Over Direct Contracts for the Defense of Kyivvodokanal

A public conflict has erupted between the Auto estrada group of companies (founded by Maksym Shkil) and the new leadership of the State Agency for Restoration and Development of Infrastructure of Ukraine, headed by Ivan Fedorov.

The dispute concerns the engineering protection of critical infrastructure facilities of Kyivvodokanal amid water supply disruptions in the capital due to Russian attacks on the energy sector. Shkil stated that in October the agency head gave an urgent task to start protecting Kyivvodokanal facilities.

Auto estrada took on legal risks and began work immediately—without contracts and without confirmed funding. A design institute was connected, geological and geodetic surveys were conducted, and production units were mobilized.

4 In November the client gave an oral instruction from the first deputy head of the agency, Inna Vnukova, to stop the implementation of the facilities. 5 In November, at a private meeting with Ivan Fedorov, Auto estrada leadership clarified whether to continue the works.

According to Shkil, the answer was “no” due to “tension in relations with the company.” From the end of 5 November, Auto estrada halted the works, removed people from the facilities, and focused on other projects.

Shkil called Fedorov’s information about Auto estrada’s refusal to participate a lie and said that 23 in October the company sent the client a written confirmation of readiness to implement the project. 7 In November Ivan Fedorov said that the Agency is organizing an engineering protection 9 of Kyivvodokanal facilities.

From 7, works have already begun on some sites, and two more will start soon. In total, at least seven experienced contractors are planned to be involved to ensure pace, quality, and competition. He said that more than two months ago the Agency polled contractors on their readiness to start.

At that time Auto estrada refused. Fedorov also mentioned the company’s problems with preparing for winter road maintenance and stressed that requirements for all contractors are the same, and Auto estrada is the only one publicly complaining about the division of labor. There is no separate open tender on Prozorro specifically for protecting these 9 Kyivvodokanal facilities, and such a tender was neither created nor planned. This is standard practice for engineering protection of critical infrastructure. The Agency for Restoration (through regional services) signs direct contracts with contractors, bypassing open procurement.

This is explicitly provided:

- by subparagraph 13 of point 13 of the Cabinet of Ministers decree ¹ 1178 (Features of public procurement);

- by the government’s October 2025 year decision, which up to 1 March 2026 year allowed contracts to be concluded without open bidding and without an electronic catalog for construction and protection of critical infrastructure facilities (including life-support systems — water, heating, electricity).

The central procurement organization of the Agency operates only through open tenders and is not involved in such “emergency” protection projects—precisely to save time, since the standard procedure stretches over 30 and more days.

That is why Shkil’s post refers to works “without contracts and without confirmed funding,” while Fedorov speaks of engaging contractors without reference to a specific tender. Contracts (if already signed) may appear in Prozorro later only as reports on direct agreements.

The situation arose amid water supply problems in Kyiv (complete or partial water supply shutoffs 3–4 in November 2026 due to power outages at facilities). The Agency for Restoration is responsible for engineering protection of critical infrastructure.

The public statements by the parties contradict each other about who initiated the halt of the works and whether Auto estrada was ready to participate in the project.