The Security Service of Ukraine documented a multimillion corruption scheme during the procurement of inventory for the repair of Ukrzaliznytsia passenger trains.

Allegedly, the scheme was organized by the management of the Passenger Company branch of Ukrzaliznytsia through affiliated companies, including those with signs of fictitiousness.

The SBU established that during 2019-2020 the branch company allocated more than UAH 60,000,000 (USD 2,170,000) for the procurement of equipment for the repair of passenger trains. The winning bidders were dummy companies controlled by the organizers, to which Ukrzaliznytsia transferred the entire sum of money.

According to the experts, the unjustified overpricing of the equipment caused losses to the state by almost UAH 12,000,000 (USD 434,700).

In order to document the illegal activities, the SBU jointly with the National Police are conducting a number of searches in Kyiv and Vinnytsia in the offices of Ukrzaliznytsia and the affiliated companies.

The investigation is ongoing within the criminal proceedings initiated under Part 5 of Art. 191 of the Criminal code of Ukraine

The operation was conducted by the SBU Main Directorate of Economic Counter-Intelligence Protection of the State's Interests and the SBU Office in Vinnytsia region together with the Main Directorate of the National Police in Vinnytsia region under the supervision of the Prosecutor's Office in Vinnytsia region.