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Ukrainian Security Service exposes scheme on purchase of low-quality parts for Ukrainian Railways

Source : 112 Ukraine

Found products could lead to damage of Ukrzaliznytsia’s contact network, the value of which is over $111,4 mln
15:44, 27 August 2021

Ukrainian Security Service
Ukraine's Security Service

The Security Service of Ukraine exposed the scheme of purchasing low-quality spare parts for Ukrzaliznytsia, which were sold under the guise of innovative products at inflated prices and produced in the temporarily occupied territories of Luhansk region, the press service of the Security Service of Ukraine states.

"The dealers supplied low-quality components for the rolling stock worth over $111,4 mln. The components were manufactured in the temporarily occupied territories of Luhansk region. Russian citizen was involved in organizing deals. According to preliminary expert opinions, the products do not meet the technical conditions of operation and could lead to damage of Ukrzaliznytsia’s contact network, the value of which is over $111,4 mln," the statement reads.

In order to make a profit, the offenders artificially inflated the value of the goods 10 times, the statement says. They did this under the guise of purchasing spare parts made from innovative material.

"It has been established that a citizen of the Russian Federation together with high-ranking officials of a state-owned enterprise set up a corrupt mechanism of purchasing spare parts for rolling stock. They purchased goods through a Russian-controlled commercial structure in Kyiv," the intelligence service states.

Related: Security Service comments on ban for Ukraine’s entrance for Rodion Batulin

They note that the detected products are currently under arrest as part of criminal proceedings.

Investigative and operative actions are underway to establish all the circumstances of the illegal activity and to bring to justice the persons involved in it.

As it was reported earlier, joint-stock company Ukrzaliznytsia and Deutsche Bahn Engineering & Consulting have signed an agreement on consulting in the field of passenger transportation. It is a question of adjustment of planning and development of passenger railway transportations, optimization of purchases and updating of rolling stocks.

Related: Chaus to stay under house arrest guarded by Security Service

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