Ex-advisor to the President’s Office detained for embezzling UAH 95 million from Ukrzaliznytsia
2 April 2024 12:22
Law enforcement officers have exposed an organised group led by a former adviser to the Office of the President of Ukraine that seized UAH 94.8 million of Ukrzaliznytsia’s funds during the purchase of transformers. This was reported by the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor’s Office (SAP).
Investigators have not named the defendants, including the former adviser to the Presidential Office. However, according to journalist Oleh Novikov, it is a former advisor to the Presidential Office and SBU official Artem Shyl.
According to the investigation, in the period from June to December 2022, the group leader, through controlled employees of Ukrzaliznytsia, ensured that a predetermined company was selected as a supplier of power transformers at an inflated cost.
In particular, he sent a letter to Ukrzaliznytsia “Concerning Threats to State Security”, which became the basis for rejecting the proposals of other bidders with much more favourable price terms.
The winning company is controlled by a Belarusian citizen with ties to Russia, law enforcement officials said. It was this “winner” who, through a controlled shell company registered in Bulgaria, purchased transformers from a manufacturer in Uzbekistan and resold them to Ukrzaliznytsia at a price that was artificially increased almost twice.
As a result of this scheme, Ukrzaliznytsia suffered losses of UAH 94.7 million in 2022-2024, which the offenders took possession of and disposed of at their own discretion.
The court has already seized UAH 53 million in the bank accounts of the supplier company. The leader, co-organiser and two members of the organised group were detained, and the case was preliminarily classified under Part 5 of Article 191 of the Criminal Code of Ukraine.
The offenders face up to 12 years in prison with confiscation of property.
What is known about Artem Shilo
Artem Shilo is an employee of the Security Service of Ukraine, who worked as an adviser to the Presidential Office for a year.
In August 2022, he returned to the SBU as the Head of the Main Directorate for Counterintelligence Protection of Critical Infrastructure and Countering Terrorist Financing. During his time at the SBU, Artem Shylo was involved in numerous corruption scandals.
In total, over 10 years of service, Artem Shilo’s family has accumulated more than $4 million in assets. The Schemes journalists found out that Artem Shilo had a house near Kyiv registered in his father’s name. The property is located in the Zoloche cottage community in the village of Vyshenky, Boryspil district, Kyiv region.
According to Bihus.Info, in addition to the house in Zoloche, Artem Shilo owns the following real estate: two three-bedroom apartments in the elite Novopecherski Lypky residential complex, another two-bedroom apartment and 360 m² of real estate in Novopecherski Lypky, registered in his wife’s name, and a total of 275 m² in a clubhouse in the centre of Kyiv.
Shilo was also involved in the scandal with the Russian business 1xBet. He was also called close to the deputy head of the office of the President of Ukraine, Oleg Tatarov, and those who “follow the railway”.
He was dismissed from his position as head of the SBU’s Main Directorate for Counterintelligence Protection of Critical Infrastructure and Countering Terrorist Financing in March, as reported by Forbes, citing three sources.
