Ukrzaliznytsia (UZ)

A Conveyor of Corruption Schemes

JSC "Ukrzaliznytsia" is the state railway monopoly that handles passenger and freight transportation across the entire country. At the same time, it holds the record for the number of anti-corruption cases among state enterprises: the National Anti-Corruption Bureau of Ukraine (NABU) is conducting dozens of parallel proceedings against its officials.

Food for the Army with a 150% Markup

In March 2022, when there was an urgent need to supply food for the army, the former first deputy minister of agrarian policy organized the procurement of products through controlled intermediary firms. The price per kilogram was artificially increased by approximately 150% — from 30 to 75 UAH. After payment, the money was transferred to an offshore company showing signs of being fictitious. The total damages amount to nearly 64 million UAH.

Member of Parliament, Cables, and 140 Million UAH in Damages

A court case has been sent against a member of the Ukrainian parliament and former deputy head of Ukrzaliznytsia regarding the purchase of cable-conductor products at inflated prices. The damages exceed 140 million UAH. Three participants entered into a plea agreement: Ukrzaliznytsia was reimbursed 71 million UAH, an additional 95 million UAH was paid into the state budget, and 25 million UAH were allocated to the needs of the Armed Forces.

"Back Office" and Transformers from Belarus

NABU and the Specialized Anti-Corruption Prosecutor's Office (SAPO) submitted to court the case concerning Ukrzaliznytsia's "back office" — a scheme whereby a company controlled by a Belarusian citizen supplied transformers at twice the market price through a fictitious tender winner. The damages equal 94.7 million UAH. The court confiscated 54.6 million UAH in favor of the state. Separately, there were repairs of "track machines" without any actual repairs totaling 17 million UAH, procurement of paint and linoleum worth 15 million UAH, and metal hardware worth 20 million UAH. Each scheme follows the same pattern: a compliant official, a predetermined winner, and fictitious documents.