An official at Ukrzaliznytsia is suspected of causing losses to the state amounting to 48 million hryvnias

Inna Kramarchuk
Inna Kramarchuk Journalist
An official at Ukrzaliznytsia is suspected of causing losses to the state amounting to 48 million hryvnias
Source: Office of the Prosecutor General
The Kyiv Regional Prosecutor’s Office has notified the director of one of the branches of JSC ‘Ukrzaliznytsia’ that he is under suspicion. According to the investigation, in 2025 he organised auctions for the lease of freight semi-wagons using a scheme which, according to law enforcement officials, caused the state-owned enterprise losses of over 48 million hryvnias

This was announced by the Office of the Prosecutor General.

What are the allegations?

According to the investigation, between May and August 2025, the official organised 184 auctions via the ‘Prozorro.Sales’ system for the transfer of freight semi-wagons for use.

Law enforcement officials note that, in accordance with the company’s internal rules, such auctions were to be conducted using the English model, whereby participants increase their bids and the winner is the one who offers the highest amount.

However, according to the investigation, the auctions were conducted using the Dutch model, in which the starting price is gradually reduced until the lot is sold.

The prosecution claims that, at that time, demand for the use of semi-wagons remained high, so there were no economic grounds for using this auction model. As a result, according to the investigation, certain companies were able to use the wagons at a lower cost.

What is the potential penalty?

Following the investigation, law enforcement agencies estimated the losses incurred by ‘Ukrzaliznytsia’ at over 48 million hryvnias. The official was notified of suspicion in relation to 184 separate incidents.

His actions were classified under Part 5 of Article 191 of the Criminal Code of Ukraine — misappropriation of property through abuse of official position, committed under martial law.

The Public Prosecutor’s Office has also applied to the court for a preventive measure in the form of remand in custody and the suspect’s removal from his post.

At the same time, in accordance with Article 62 of the Constitution of Ukraine, a person is presumed innocent until proven guilty in court.

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