The case of exorbitant salaries of Pivdennyi Sea Port management

The case of exorbitant salaries of Pivdennyi Sea Port management
Start of the trial 8 May 2023
Date of verdict 28 January 2026
Instance HACC AC
Stage of criminal proceedings Appeal proceedings

The HACC has acquitted former officials of State Enterprise Sea Commercial Port Pivdennyi. They had been charged with unlawfully accruing excessive salaries during the COVID-19 quarantine restrictions imposed by the Cabinet of Ministers.

According to the prosecution, between April and August 2020, acting Director Oleksandr Oliinyk, acting in prior conspiracy with his deputies, arranged for his own salary to be accrued well above the cap set by the Cabinet of Ministers. Under a special law and a Cabinet resolution, the salaries of top management at state-owned enterprises could not exceed ten minimum wages (as of January 1, 2020) for the duration of the COVID-19 quarantine — capping the acting director's monthly pay at UAH 47,230.

To carry out the scheme, the defendants introduced a mechanism whereby the director's full salary — which reached over UAH 500,000 per month — was accrued in its entirety, but only the statutory limit was actually paid out, with the remainder artificially recorded as the enterprise's debt to the employee. The investigation maintained that this caused state losses of UAH 1,308,650.24. The charges were brought under Article 191(5) of the Criminal Code of Ukraine.

 According to media reports, notices of suspicion were served on:

  • Oleksandr Oliinyk, former acting director of Pivdennyi Seaport,
  • Dmytro Kuzmishkin, deputy director for legal and property affairs, and
  • Volodymyr Mandra, former deputy director for economics and finance.

The defense argued that the case amounted to the artificial criminalization of ordinary employment and commercial relations, and that the payments in question constituted lawful contractual remuneration. The defendants pleaded not guilty throughout the proceedings. Defense counsel stressed that the accruals were made in compliance with applicable legislation, the collective agreement, and job descriptions, and that the government-imposed restrictions contained certain legal ambiguities regarding their application to directors of state enterprises of this type.

After examining the case materials, the HACC panel found no criminal offense in the defendants' conduct. The court determined that the officials had not abused their positions, that the salary payments were made on the basis of job descriptions, and that the management's actions were aimed at protecting the enterprise's interests and ensuring its stable operations during the pandemic.

The verdict has not yet entered into force and is being appealed by the prosecutor before the HACC Appeals Chamber.

Separately, in August 2025, Oliinyk received a further notice of suspicion — this time in connection with the 2021 procurement of two telescopic handlers at inflated prices, allegedly causing state losses of over UAH 8 million. The investigation is ongoing.

Proceeding No. 12020160200000201
Case No. 991/4009/23
Date the hearing was scheduled 08/05/2023
Subject
  • Head of a state or municipal enterprise/institution
Qualification
Article 191, part 5, Article 364, part 2
Pre-trial cases №
  • 991/3234/23
  • 991/3198/23
  • 991/2283/23
  • 991/1293/23
  • 991/1294/23
  • 991/1291/23
  • 991/6727/22
  • 991/6560/22
  • 991/6562/22
  • 991/6559/22
  • 991/5191/22
  • 991/5190/22
  • 991/5098/22
  • 991/5095/22
  • 991/5096/22
  • 991/3835/22
  • 991/4860/22
  • 991/3834/22
  • 991/3832/22
  • 991/3438/22
  • 991/3432/22
  • 991/3434/22
  • 991/3444/22
  • 991/3440/22
  • 991/3439/22
  • 991/3251/22
  • 991/3247/22
  • 991/3252/22
  • 991/3248/22
  • 991/1291/22
  • 991/6504/21
  • 991/6505/21
Instance Key parties
HACC AC 05/03/2026 Panel of judges: Nykyforov A.S.
HACC 08/05/2023 Panel of judges: Voronko V.D.
THE CASE OF PIVDENNYI SEA PORT
Appeal proceedings

The HACC acquitted the former management of Pivdennyi Port. The court found no evidence that salary payments above UAH 47,000 during the quarantine period constituted a criminal offense.

Article 191(5) of the Criminal Code of Ukraine

  • pic
    April – August 2020
    Period during which the “quarantine salaries” were accrued
  • pic
    October 2021
    Port top management served with notices of suspicion for alleged embezzlement of over UAH 1.3 million
  • pic
    September – October 2022
    The HACC imposed bail on Oliinyk, Kuzmishkin, and Mandra in the amounts of UAH 1,500,000, UAH 520,000, and UAH 208,000 respectively
  • pic
    May 5, 2023
    Indictment referred to court
  • October 9, 2023
    Trial commenced
  • pic
    January 29, 2025
    The HACC delivered an acquittal for absence of corpus delicti
  • March 5, 2026
    Appellate proceedings opened at the HACC Appeals Chamber on the prosecutor's appeal

Decisions from the Register

Case No. Court Decision type
991/4009/23 HACC AC 12/03/2026 Completion of the preparation and appointment of the appeal hearing
991/4009/23 HACC AC 05/03/2026 Opening of appeal proceedings
991/4009/23 HACC 28/01/2026 Verdicts
991/4009/23 HACC 15/04/2025
991/4009/23 HACC 15/04/2025
991/4009/23 HACC 03/10/2024
991/4009/23 HACC 06/08/2024
991/4009/23 HACC 16/07/2024
991/4009/23 HACC 08/07/2024
991/4009/23 HACC 28/05/2024
991/4009/23 HACC 09/10/2023 On the appointment of a trial
991/4009/23 HACC 09/10/2023 On the appointment of a trial
991/4009/23 HACC 24/08/2023
991/4009/23 HACC 24/08/2023
991/4009/23 HACC 22/05/2023
991/4009/23 HACC 22/05/2023
991/4009/23 HACC 22/05/2023
991/4009/23 HACC 22/05/2023
991/4009/23 HACC 08/05/2023 On the appointment of a preparatory court hearing
991/3234/23 HACC 14/04/2023
991/3234/23 HACC 14/04/2023
991/3198/23 HACC 13/04/2023
991/3198/23 HACC 13/04/2023
991/2283/23 HACC 10/04/2023
991/2283/23 HACC 10/04/2023
991/1293/23 HACC 22/02/2023
991/1293/23 HACC 22/02/2023
991/1294/23 HACC 21/02/2023
991/1294/23 HACC 21/02/2023
991/1291/23 HACC 16/02/2023
991/1291/23 HACC 16/02/2023
991/6727/22 HACC 17/01/2023
991/6727/22 HACC 17/01/2023
991/6560/22 HACC 23/12/2022
991/6560/22 HACC 23/12/2022
991/6562/22 HACC 22/12/2022
991/6562/22 HACC 22/12/2022
991/6559/22 HACC 21/12/2022
991/6559/22 HACC 21/12/2022
991/5191/22 HACC 24/11/2022
991/5190/22 HACC 21/11/2022
991/5190/22 HACC 21/11/2022
991/5190/22 HACC 09/11/2022
991/5098/22 HACC 04/11/2022
991/5098/22 HACC 04/11/2022
991/5095/22 HACC 03/11/2022
991/5096/22 HACC 03/11/2022
991/5096/22 HACC 03/11/2022
991/5190/22 HACC 03/11/2022
991/5095/22 HACC 03/11/2022
991/5096/22 HACC 02/11/2022
991/5098/22 HACC 02/11/2022
991/5096/22 HACC 02/11/2022
991/5095/22 HACC 02/11/2022
991/3835/22 HACC 01/11/2022
991/3835/22 HACC 01/11/2022
991/4860/22 HACC 28/10/2022
991/4860/22 HACC 28/10/2022
991/3834/22 HACC 20/10/2022
991/3832/22 HACC AC 20/10/2022
991/3834/22 HACC AC 20/10/2022
991/3832/22 HACC AC 20/10/2022
991/3832/22 HACC 20/10/2022
991/3834/22 HACC AC 20/10/2022
991/3834/22 HACC 20/10/2022
991/3832/22 HACC 20/10/2022
991/3438/22 HACC 12/10/2022
991/3438/22 HACC 12/10/2022
991/3438/22 HACC AC 12/10/2022 Decision on partial granting of appeals
991/3438/22 HACC AC 12/10/2022 Decision on partial granting of appeals
991/3432/22 HACC 04/10/2022
991/3434/22 HACC 04/10/2022
991/3432/22 HACC AC 04/10/2022
991/3434/22 HACC 04/10/2022
991/3432/22 HACC 04/10/2022
991/3434/22 HACC AC 04/10/2022
991/3434/22 HACC AC 04/10/2022
991/3432/22 HACC AC 04/10/2022
991/3444/22 HACC AC 15/09/2022
991/3444/22 HACC 15/09/2022
991/3444/22 HACC 15/09/2022
991/3444/22 HACC AC 15/09/2022
991/3440/22 HACC 13/09/2022
991/3440/22 HACC 13/09/2022
991/3439/22 HACC 13/09/2022
991/3439/22 HACC 13/09/2022
991/3251/22 HACC 26/08/2022
991/3247/22 HACC 26/08/2022
991/3252/22 HACC 26/08/2022
991/3248/22 HACC 26/08/2022
991/3247/22 HACC 26/08/2022
991/3252/22 HACC 26/08/2022
991/3248/22 HACC 26/08/2022
991/3251/22 HACC 26/08/2022
991/1291/22 HACC 02/03/2022
991/6504/21 HACC 06/10/2021
991/6505/21 HACC 06/10/2021