The SSU has blocked a corruption scheme in Kharkiv regional branch of Ukrzaliznytsia JSC.

The SSU exposed two officials who massively embezzled new railway rails intended for emergency restoration of destroyed tracks in the frontline areas of the oblast.

Such unlawful actions could have led to disruption of logistical routes of the Defence Forces on the eastern front. This also could have disrupted supply of military equipment to the frontline.

According to the investigation, a head of unit within the regional Ukrzaliznytsia branch and his deputy organized the scheme.

In May 2022, they used old rails, which have expired, to repair railway tracks damaged by russian shelling.

The outdated components were obtained by ‘writing them off’ as scrap metal, which was supposed to be used to make ‘Czech hedgehogs’. However, no anti-tank obstacles were actually produced, and the old parts were used in repairs.

The officials used the new rails from the state reserve to fulfil ‘individual’ commercial orders, which were not officially registered, and were paid for in cash.

They removed the markings on new rails to make identification impossible.

The organizers of the scheme received UAH 1.2 mln (USD 32,000) from entrepreneurs. They also entered false information into the reporting and financial documentation.

Based on the evidence collected, both employees of Ukrzaliznytsia branch were notified of suspicion under three Articles of the CCU:

• 191.5 (embezzlement of property through abuse of office, committed on a particularly large scale, by prior conspiracy, under martial law);
• 366.1 (official forgery);
• 368.4 (obtaining unlawful benefit by an official on a particularly large scale).

The suspects are in custody, facing up to 12 years in prison.

The SSU Office in Kharkiv region carried out the operation jointly with the National Police under the supervision of Kharkiv District Prosecutor’s Office in cooperation with the management of Ukrzaliznytsia JSC.