A gas turbine giant with 1.4 billion in losses: details of the high-profile Zorya-Mashproekt case

3 April 18:33

As part of the investigation into the case against the management of Zorya-Mashproekt, which is accused of embezzling $71.6 million, NABU and SAPO have sent more than 20 requests for international legal assistance to various jurisdictions. This was reported by "Komersant Ukrainian" with reference to the NABU’s post on its official Telegram channel.

Thanks to the response from the competent authorities of India, it was possible to obtain confirmation that the agency services for which the money was paid were fictitious. The information received from Switzerland and Latvia made it possible to trace the money laundering routes.

Individual proceedings and further actions

The materials concerning the head of the non-resident private company and other allegedly involved persons were separated into separate criminal proceedings. International cooperation is ongoing, as the location of the funds and potential accomplices abroad remains an open question.

Zorya-Mashproekt case: context

The enterprise is a strategically important object of the Ukrainian defense industry, which is important for national security. The case demonstrates the systemic problem of abuses in public procurement and international trade in defense products in previous years, especially in the context of weak oversight and political cover for high-ranking officials.

The NABU and the SAPO emphasize the need to bring all those involved to justice and ensure full compensation for the state. The case will be considered by the High Anti-Corruption Court.

What is known about Zorya-Mashproekt

The State Enterprise “Research and Production Complex for Gas Turbine Construction “Zorya”-“Mashproekt” is one of the key players in the Ukrainian defense industry, specializing in the production of gas turbine units for the marine fleet, energy sector and gas transportation infrastructure.

What is the main specialization of the company?

Our core business is the development, manufacture and modernization of

  • gas turbine engines with a capacity of 3-25 MW;
  • gearboxes and multipliers;
  • power units for marine vessels;
  • drives for gas compressor stations.

This allows the company to meet the technical needs of both military and civilian infrastructure.

Where is the company located?

The production facilities and administrative structure are located in Mykolaiv. It is there that the following facilities are concentrated:

  • design and development office
  • research and development center;
  • serial production;
  • test benches.

This combination of scientific and production resources allows us to carry out a full cycle of gas turbine production.

What markets does the company serve?

Zarya-Mashproekt products are exported to dozens of countries, including

  • for the needs of the Navy (both in Ukraine and abroad);
  • for energy and oil and gas facilities;
  • for modernization of existing systems at the request of foreign partners.

The company operates within the framework of the strategic program of international cooperation and fulfills contracts with both public and private customers.

What is the status of the enterprise today?

“Zarya-Mashproekt is a member enterprise of Ukroboronprom. As of 2024, the average number of employees exceeds 9,000. The company is included in the list of budget-forming organizations of the region and remains one of the most important industrial assets of Ukraine in the strategic sector.

What are the company’s prospects?

Despite some incidents in the past, the company continues to fulfill its production tasks. According to public data, the company retains its human and technological capabilities, as well as orders from the state and foreign partners.

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Мандровська Олександра
Editor

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