The HACC found Leonid Shyman, Director General of the state enterprise Pavlohrad Chemical Plant, and Commercial Director Valerii Kyrylov guilty of abuse of official position, which caused the state enterprise over UAH 43.3 million in damages.

The defendants in the case are:

• Leonid Shyman, Director General of the SE Research and Production Association Pavlohrad Chemical Plant (hereinafter — SE RPA PCP);
• Valerii Kyrylov, Commercial Director of the same state enterprise;

Yevhen Fomin, director of the private intermediary companies Research and Production Enterprise Zoria LLC, Ukrspetskhim LLC, and Ukrspetskhem LLC, was also charged in the case. After the indictment was referred to court, Fomin was out of contact for a long time and did not appear at hearings — as it turned out, because he was on the temporarily occupied territory of Ukraine. He was later put on the wanted list, and the materials concerning him were severed into separate proceedings and suspended. The court did not authorize in absentia proceedings in his case.

According to the investigation, between 2013 and 2016, Leonid Shyman, Director General of SE RPA PCP, conspired with Commercial Director Valerii Kyrylov and private company owner Yevhen Fomin to sell industrial explosives manufactured by the state enterprise through controlled intermediary firms.

The companies controlled by Yevhen Fomin bought explosives from the plant at reduced prices and resold them to actual customers at a markup of about 30%. The intermediaries served a paper function only: products were shipped to the end customers — mining companies PJSC Kryvyi Rih Iron Ore Plant and PJSC Central Mining and Processing Plant — directly from the state enterprise's warehouses, with no involvement of the intermediaries' resources.

To secure the controlled companies' monopoly position, Leonid Shyman and Valerii Kyrylov deliberately blocked SE RPA PCP from working directly with other counterparties. When representatives of the mining companies tried to enter direct contracts with RPA PCP, plant officials either turned them down — urging them to approach Fomin's firms — or set prices significantly higher than those offered by the intermediaries.

The state enterprise was thus denied genuine market profits, and over UAH 43.3 million that should have gone to the budget was funneled to the accounts of private companies.

The defendants' actions were classified under Article 364(2) of the Criminal Code of Ukraine.

Together with the criminal case, the court also took up the prosecutor's civil claim for recovery of UAH 43.3 million in damages. The defendants' bank accounts and real estate were frozen.

The court also imposed monetary penalties on Leonid Shyman twice for failing to appear at hearings due to business trips. As it turned out, the defendant had signed his own business-trip orders.

In August 2026, the HACC found Shyman and Kyrylov guilty under Article 28(2) and Article 364(2) of the Criminal Code of Ukraine. Leonid Shyman was sentenced to five years' imprisonment, a fine of UAH 17,000, and a three-year ban on holding managerial positions.

Valerii Kyrylov was sentenced to 4.3 years' imprisonment, a fine of UAH 15,300, and a three-year ban on holding managerial positions.

The court also granted the civil claim and ordered the defendants to pay UAH 36.2 million jointly and severally, in favor of the state as represented by the Ministry of Defense of Ukraine, as compensation for damages caused by their actions.

This is not the first case against Leonid Shyman. He is also named in cases concerning:

• the supply of UAH 3.3 billion worth of defective mortar shells to the Armed Forces of Ukraine (the case is being heard by the Shevchenkivskyi District Court of Kyiv);
• the embezzlement of UAH 102.4 million during the procurement of reactive armor for the Armed Forces' armored vehicles;
• the procurement of measuring instruments for the plant at inflated prices;
• abuses involving nearly UAH 28.5 million during a 2016 pipe procurement.

In a separate case, Valerii Kyrylov received a four-year prison sentence for the sham use of intermediary companies in the sale of explosives produced by SE RPA PCP. His actions caused over UAH 7 million in damages to the state. The HACC Appeals Chamber upheld the verdict.