The SSU, together with the NABU and SAPO, has uncovered a large-scale embezzlement of the property of the state-owned Ukrainian Danube Shipping Company PJSC.

The persons involved misappropriated 32 barges of the company’s merchant fleet worth over UAH 80 mln (USD 2.1 mln).

According to the investigation, the scheme was organized by two former members of Odesa Regional Council from the banned opposition platform – for life party and the ex-head of the shipping company.

In 2017, they concluded several agreements between the shipping company and a company under their control to lease the 32 vessels.

However, instead of using them for their intended purpose, the fraudsters took the state-owned barges out of Ukraine, changed their license plates and falsely re-registered them to an affiliated company.

The vessels were then transported to a country in the Middle East. There, they were dismantled and converted into 12 barges with a higher capacity. Later, the involved local ‘politicians’ used them for commercial purposes, including in Ukraine, but under a different registration.

The law enforcement agencies have now located all the stolen vessels and seized them.

The SSU-initiated examinations confirmed that the ‘new’ water transport was built using parts of the state-owned enterprise’s boats.

Based on the evidence, the three organizers and three accomplices have been notified of suspicion under three Articles of the CCU:

• 190.4 (fraud, committed by an organized criminal group, on a particularly large scale);
• 191.5 (misappropriation of property by abuse of office, committed by an organized criminal group, on an especially large scale);
• 209.3 (transactions with property obtained as a result of a socially dangerous illegal act that preceded laundering of proceeds, committed by an organized group on an especially large scale).

The investigation is ongoing to establish all the circumstances of the crime and bring the involved to justice. The suspects face up to 12 years in prison.

The seized property has been transferred to be managed by ARMA.

The investigation was conducted under the procedural supervision of the Specialized Anti-Corruption Prosecutor’s Office.