Case description
On July 5, 2024, the HACC found the brothers of Vladyslav Kaskiv, former Head of the State Agency for Investments and Management of National Projects, and a number of other people guilty of embezzling UAH 260 million allocated for the implementation of two national projects in 2012. All the defendants pleaded guilty.
The case concerns the events of 2012-2014, when the structures of the State Agency for Investments and Management of National Projects, headed by Vladyslav Kaskiv during the Yanukovych era, lent almost UAH 260 million to two private firms. They allegedly had to implement two projects: install drinking water machines in the largest cities of Ukraine (the Quality Water project) and prepare the infrastructure for the potential Winter Olympics in Ukraine (the Olympic Hope 2022 project). However, the money was stolen and the projects were not implemented.
The criminal organization included the following members:
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Oleksandr Kaskiv, brother of the former Head of the State Agency for Investments and Management of National Projects,
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Serhii Shut, his deputy,
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Yurii Lutak, CEO of the State Investment Company,
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Andrii Lemish, head of the Credit Department of the State Investment Company,
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Andrii Stelmakh, Director of Borysfen Trading House,
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Oleksandr Matkovskyi, Kaskiv's cousin
The case also involves Serhii Lidov (Vladyslav Kaskiv's driver), Serhii Moiseyenko (another driver of Vladislav Kaskiv), Ruslan Usov (Serhii Shut's driver), and Vadym Bei (an employee of the State Agency for Investments and Management of National Projects). They are currently serving in the Armed Forces of Ukraine, so the proceedings against them have been suspended.
In late 2011, the defendants developed a criminal plan to seize the funds. In 2012, Lemish and Shut, having access to information about the requirements for participants to receive state assistance, together with Kaskiv brothers, searched for people who would agree to become formal managers of shell companies for a monetary reward. Andrii Stelmakh, in particular, became one of them.
Subsequently, the acquisition of Borysfen Trading House LLC, a potential fictitious winner of the tender for the implementation of the Quality Water national project and a recipient of funds from the State Investment Company, an enterprise within the structure of the State Agency for Investments and Management of National Projects, was secured.
In addition, a number of other companies were involved in the criminal scheme: Veritas In LLC, Pryazovspetskomplekt LLC, Borzhava Resort LLC, Borzhava Balnierio LLC, Construction Company Combud LLC, and Construction Company Prykarpattia LLC. They were also planned to be used as fictitious participants in the tenders.
The members of the investment committee who made the decision to allocate funds did not have objective information about the companies' lack of intentions and ability to implement the national projects. Therefore, Borzhava Resort LLC received a UAH 135 million loan, Veritas In LLC received a UAH 65.7 million loan, and Borysfen Trading House LLC also received a UAH 65.7 million loan.
In 2012-2015, Kaskiv's deputy Shut found offshore companies in Cyprus, the Seychelles, and the Republic of Latvia through which the defendants sought to withdraw illegally obtained funds. In total, UAH 259.2 million ended up on the accounts of companies controlled by Kaskiv's brother. Part of the money was spent in Ukraine, in particular, by buying up 700 land plots in the Zakarpattia and Volyn regions with a total area of about 1,000 hectares.
The rest of the money was spent on the purchase of a Robinson R44 helicopter and a Viper SD 4 aircraft used by the former Director of the State Agency for Investments and Management of National Projects.
All the defendants in the case decided to conclude plea agreements. Oleksandr Kaskiv and Serhii Shut, whose actions were classified under Article 27(3), Article 191(5), Article 27(3), and Article 209(3) of the Criminal Code of Ukraine, were sentenced to UAH 850,000 in fines.
Kaskiv's cousin Oleksandr Matkovskyi, who was charged under Article 27(3), Article 191(5), Article 27(3), and Article 209(3) of the Criminal Code of Ukraine, was fined UAH 400,000. Director of the shell company, Andrii Stelmakh, whose actions were qualified under Article 27(5), Article 191(5), and Article 209(3) of the Criminal Code of Ukraine, received a year of probation instead of 5 years in prison.
Lemish and Lutak are to pay UAH 200,600 jointly and severally under Article 191(5) of the Criminal Code of Ukraine.
Under the terms of the plea deal, the defendants also have to reimburse the budget UAH 259.2 million in damages within six months. In addition, 507 land plots and one real estate object were transferred to the ARMA for sale as part of the case. The proceeds will be transferred to support the Armed Forces of Ukraine. Another UAH 13 million will be allocated to the needs of the army at the expense of the bail posted and additional obligations of the two organizers of the crime. Another 202 plots were transferred to the state through the special forfeiture procedure.
Vladyslav Kaskiv himself is not involved in this case. Back in 2017, he was extradited to Ukraine in a case of embezzlement of money while paying for outdoor advertising, the condition for extradition was that Kaskiv would not be prosecuted for his previous actions. Moreover, in 2020, he was elected a member of the Zakarpattia Regional Council from the Opposition Platform—For Life party.
