Case description
The NABU and the SAPO suspect former Minister of Infrastructure Andrii Pyvovarskyi of causing more than $40 million in losses to the state through a fraudulent collection of ship dues.
The investigation claims that in 2015, Pyvovarskyi and his former deputy Volodymyr Shulmeister issued an order allowing private companies to charge half the rate of ship dues to ships in Pivdennyi Seaport. The order was issued despite the fact that the port's water area is state property, and the right to charge fees belongs exclusively to the state-owned enterprise. Previously, at a meeting of the Tariff Council, it was determined that ship dues were to be collected exclusively for the benefit of the state enterprise USPA. However, a senior official at the Ministry of Infrastructure instructed his subordinate, the Deputy Director of the Department of Economics and Finance, to proceed with arrangements for distributing the collected dues between the state enterprise and the private companies TIS-Container Terminal LLC and TIS-Ruda LLC.
Pyvovarskyi approved amendments to the Ministry of Infrastructure's regulatory drafting plan for the second quarter of 2015, including draft amendments to the relevant order of the Ministry. Despite the absence of legal and economic justification, officials initiated and facilitated the approval of the draft order of the Ministry of Infrastructure by its structural divisions, relevant ministries, agencies, and the Cabinet of Ministers of Ukraine. The explanatory note accompanying the draft order stated that its objectives were to “ensure free and safe access of ships to port berths,” “attract investment,” and “improve the efficiency of port facilities.”
At the Cabinet meeting, Pyvovarskyi, concealing the true purpose of the regulatory amendments, stated that they were necessary for “improving the current regulatory framework” and “implementing a competitive tariff policy for seaports.”
Therefore, it is presumed that officials of the Ministry of Infrastructure adopted amendments to the distribution of ship dues rates. As a result, the USPA lost a significant portion of the revenue that should have been directed to the state budget. Expert examinations identified more than $40 million in losses to the state between 2017 and 2021.
Pyvovarskyi denied the charges, calling them manipulative and speculative. He emphasized that after 2016, when he was no longer a minister, he could not have caused any losses. He also noted that the draft order was initiated before his appointment, passed all necessary approvals, and was sent to the Cabinet of Ministers for re-approval after the changes.
The USPA also filed a civil lawsuit seeking to recover UAH 49.3 million from the defendants and UAH 49.3 million from the TIS group of companies.
Pyvovarskyi and Shulmeister are charged with Article 364, Part 2 of the Criminal Code of Ukraine.
