The Security Service of Ukraine has dismantled a large-scale scheme involving the embezzlement of budget funds allocated for modernising the energy infrastructure in Zakarpattia region.

Following a thorough investigation, a former local official was exposed for his involvement in the embezzlement of UAH 104 million (USD 2.3 mln) during the construction of a protective structure for a key local power substation.

The investigation revealed that the suspect was the former head of the Transcarpathian Regional Service for Infrastructure Restoration and Development.

While in office, in March 2024, he signed certificates of completion for the construction of a protective structure for the energy facility against russia’s air attacks.

The total cost of the project was UAH 5.1 billion. To embezzle some of these funds, the official approved the contractor’s purchase of construction materials at inflated prices.

The ‘difference’ obtained was channelled into the shadow economy through controlled companies and distributed among all participants in the scheme.

Following the embezzlement of state funds, the construction was not completed. The protective structures remain unfinished to this day.

A forensic examination initiated by the Security Service confirmed the facts of the crime.

During searches of the former official’s home and workplace, documentation and computer equipment containing evidence of illegal activity were seized.

The perpetrator has been notified of his status as a suspect under Article 191.5 of the CCU (misappropriation, embezzlement or acquisition of property through abuse of official position on a particularly large scale).

The investigation is ongoing in order to bring all persons involved in the embezzlement of state budget funds to justice.

The operation was carried out under the procedural supervision of the Prosecutor’s Office.