Business news from Ukraine

Ukrenergo CEO links NABU allegations against him to case of bulletproof vests procurement

27 July , 2024  

Volodymyr Kudrytskyi, Chairman of the Board of NPC Ukrenergo, links the statement to the National Anti-Corruption Bureau about his alleged criminal offense to the case of the company’s purchase of bulletproof vests at the beginning of Russia’s full-scale invasion of Ukraine.

“This is an old, dead case of bulletproof vests that the company purchased at the request of the National Guard in early March 2022. We found several hundred bulletproof vests of class 4 at a price of UAH 16.4 thousand including VAT. At that time, it was significantly lower than the prices at which others were buying,” Kudrytskyi said at a briefing at the Ukraine Media Center in Kyiv on Friday.

According to him, apart from Ukrenergo, there are no claims against anyone, and from time to time “nameless political analysts” revive the case: either by throwing it into the media space or by writing statements to have the NPC checked once again.

The company’s CEO added that he treats this as an attempt to create an information throw-in and believes that “the case has not had and will not have any prospects in law enforcement agencies or in courts.”

Kudrytskyi suggested that the reason for his discrediting as the head of the company may be the active involvement of Ukrenergo in international financing, which has exceeded EUR 1.5 billion since the beginning of the full-scale war.

“Alternatively, some people are not satisfied with the EUR 1.5 billion of financing we have attracted since the beginning of the war. Maybe there are other reasons. In my opinion, this is just white noise,” said the head of the system operator.

Answering Energoreforma’s question about the reaction of international partners to the information about a possible criminal offense, Kudrytskyi noted that there was none. “Western partners have not reacted in any way.
There is no need to make any judgments. Trust is determined not by words, but by facts, and our partners have entrusted us with EUR1.5 billion, which is several times or even ten times more than any other company,” he said.

At the same time, Kudrytskyi emphasized that each artificial media attack leads to additional difficulties in attracting much-needed additional financial resources for the power system.

“The people who do this pursue their own selfish interests and, most likely, corrupt interests, but ultimately harm the interests of the state,” summarized the CEO of Ukrenergo.

The High Anti-Corruption Court, by its ruling of July 17, 2024, ordered the authorized persons of the National Anti-Corruption Bureau of Ukraine to enter information about a criminal offense into the Unified Register of Pre-trial Investigations (URPI) at the request of the person indicated in the ruling as person No. 6, dated June 28, 2024. The ruling states that the applicant raised the issue of possible criminal offenses committed by the Chairman of the Board of NPC Ukrenergo. The court notes that such a statement must be entered into the URPTI within 24 hours of its submission.

As reported, on June 26, the Security Service and the National Anti-Corruption Bureau of Ukraine announced that they had exposed the head of one of the departments of NPC Ukrenergo, who is no longer employed by the company, for corruption during the purchase of bulletproof vests.

According to the investigation, this purchase resulted in budget losses of over UAH 10 million. The issue of choosing a measure of restraint against the suspect is being decided.

Since the beginning of the full-scale war, NPC Ukrenergo has attracted more than EUR 1.5 billion in international financing in the form of loans and grants, half of which was used to restore and reconstruct the grids. Another 24% was used to build passive protection, and 34% to maintain market liquidity. The largest amount of funding was provided by the European Bank for Reconstruction and Development (EBRD) – EUR670 million. Another EUR324 million was received with the support of the German state development bank KfW, EUR224 million – from the International Bank for Reconstruction and Development (IBRD) and EUR136 million – from the European Investment Bank (EIB). July 18 NPC Ukrenergo and KfW agree on a EUR100 million grant. July 23 The EIB Group announces that it plans to allocate EUR86 million to Ukrenergo for the construction of drone shelters.

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