Abuse at Pavlohrad Chemical Plant: The Case of Commercial Director Valerii Kyrylov

Abuse at Pavlohrad Chemical Plant: The Case of Commercial Director Valerii Kyrylov
Start of the trial 14 November 2019
Date of verdict 10 July 2023
Instance CCC
Stage of criminal proceedings Cassation proceedings

On July 7, 2023, the HACC found Valerii Kyrylov, Commercial Director of the Pavlohrad Chemical Plant, guilty of abuse of office for selling explosives through intermediaries. He was sentenced to four years' imprisonment. The HACC Appeals Chamber upheld the verdict.

In 2015, Valerii Kyrylov, Commercial Director of the state enterprise Pavlohrad Chemical Plant (the PCP), abused his office to secure unlawful profit for a private company — Zoria Research and Production Enterprise LLC — at the state's expense.

According to the investigation, the scheme worked as follows:

  1. When large combines — notably Kryvyi Rih Iron Ore Plant and Central Mining and Processing Plant — ran supplier selection procedures, Kyrylov deliberately submitted inflated bids on PCP's behalf. The private company Zoria simultaneously offered a lower price, so the state plant would lose the tender and the intermediary would win. 

  2. When buyers approached the plant directly to purchase explosives without an intermediary, Kyrylov turned them away, claiming that sales were now handled by intermediary firms. Buyers were thus forced to go to Zoria.

  3. Kyrylov signed supplementary agreements granting Zoria the right to pay the state plant on a deferred basis. This allowed the intermediary to first collect funds from the combines and only then pay PCP — effectively using state funds as an interest-free loan.

  4. Zoria did no actual work. The explosives were transported in PCP trucks directly to the combines' warehouses. The intermediary existed only on paper — to pocket the price difference.

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Because of Valerii Kyrylov's actions, the state plant sold explosives to Zoria at a low price, and Zoria resold them to end customers at a substantially higher one. The state enterprise lost revenue, while Zoria gained an unlawful benefit of over UAH 7 million.
 
Kyrylov's actions were classified under Article 364(2) of the Criminal Code of Ukraine. The HACC sentenced the official to four years' imprisonment, a UAH 17,000 fine, and a three-year ban on holding positions at state enterprises. The court also granted the prosecutor's civil claim, recovering UAH 7 million in property damages from Kyrylov in favor of PCP.
 
Kyrylov's defense appealed the verdict. Among other motions, the defense sought to release Kyrylov from criminal liability on grounds that the statute of limitations had expired, but the court rejected the defense's method of calculating the term and held that it had not yet lapsed. The term was due to expire on December 21, 2025, but already on December 17 the HACC Appeals Chamber kept Kyrylov in custody, denying the defense's appeals.
 
The verdict and the HACC Appeals Chamber's ruling are currently being appealed at the Supreme Court. Kyrylov's defense lawyer filed a motion to suspend execution of the sentence, arguing that the convict's advanced age and poor health make it impossible for him to remain isolated from society. However, the Criminal Cassation Court of the Supreme Court denied the motion.
 
Valerii Kyrylov is also charged in a separate case involving over UAH 43.3 million in damages to the SE Pavlohrad Chemical Plant. The scheme worked similarly: defendants used shell companies to sell products to customers at a markup of nearly 30%.

Proceeding No. 52017000000000675
Case No. 425/3312/17
Date the hearing was scheduled 18/11/2019
Subject
  • Head of a state or municipal enterprise/institution
Qualification
Article 364, part 2, Article 191, part 4, Article 263, part 1
Instance Key parties
CCC 03/02/2026 Panel of judges: Hryhor`ieva I.V.
HACC AC 17/08/2023 Panel of judges: Nykyforov A.S.
HACC 14/11/2019 Panel of judges: Maslov V.V.
THE CASE OF THE PAVLOHRAD CHEMICAL PLANT
Cassation proceedings

Valerii Kyrylov caused UAH 7 million in damages to the Pavlohrad Chemical Plant through abuse in the sale of its products. He was sentenced to four years' imprisonment, with a ban on holding certain positions, and a UAH 17,000 fine.

Article 364(2) of The Criminal Code of Ukraine

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    July–December 2015 Kyrylov knowingly sold explosives through an intermediary, which resold them to end customers at inflated prices
    Kyrylov knowingly sold explosives through an intermediary, who resold them at inflated prices to end users
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    October 19, 2016
    Kyrylov was served with a notice of suspicion
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    October 27, 2016
    The Prymorskyi District Court of Odesa set bail of UAH 413,000 as a preventive measure for Kyrylov
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    October 4, 2017
    The NABU served Kyrylov with a revised notice of suspicion
  • October 12, 2017
    The NABU concluded the pre-trial investigation and granted the defense access to the case file
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    November 23, 2017
    Kyrylov was placed on the wanted list, and proceedings were suspended
  • December 11, 2017
    Proceedings resumed after Kyrylov's whereabouts were established
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    Late 2017
    The case was referred to the Lysychansk City Court of Luhansk Region
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    October 16, 2019
    The Criminal Cassation Court of the Supreme Court transferred the case from the Lysychansk City Court of Luhansk Region to the HACC
  • November 14, 2019
    A preparatory hearing was scheduled in the case
  • December 3, 2020
    The HACC moved to consider the case on the merits
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    July 7, 2023
    The HACC found Kyrylov guilty and sentenced him to four years' imprisonment, along with a fine and additional penalties
  • August 17, 2023
    The HACC Appeals Chamber opened appellate proceedings on the defense's appeals
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    December 17, 2025
    The HACC Appeals Chamber upheld the verdict and the civil claim
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    February 16, 2026
    The Criminal Cassation Court of the Supreme Court opened cassation proceedings on the defense's appeals
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    February 23, 2026
    The Supreme Court didn’t stop the execution of Kyrylov's verdict

Decisions from the Register

Case No. Court Decision date Decision type
425/3312/17 CCC 16/10/2019
425/3312/17 HACC 14/11/2019 On the appointment of a preparatory court hearing
425/3312/17 HACC 26/11/2019 Decision on the implementation of remote court proceedings
425/3312/17 HACC 03/02/2020 Decision on the implementation of remote court proceedings
425/3312/17 HACC 11/03/2020
425/3312/17 HACC 12/05/2020 Decision on the implementation of remote court proceedings
425/3312/17 HACC 12/05/2020 Decision on the implementation of remote court proceedings
425/3312/17 HACC 25/05/2020 Decision on the refusal/granting of the motion for the return of the indictment
425/3312/17 HACC 25/05/2020 Decision on the refusal/granting of the motion for the return of the indictment
425/3312/17 HACC 18/09/2020
425/3312/17 HACC 18/09/2020
425/3312/17 HACC 03/12/2020 On the appointment of a trial
425/3312/17 HACC 03/12/2020 On the appointment of a trial
425/3312/17 HACC 05/01/2021
425/3312/17 HACC 05/01/2021
425/3312/17 HACC 25/10/2021 Decision on the implementation of remote court proceedings
425/3312/17 HACC 05/11/2021 Decision on the implementation of remote court proceedings
425/3312/17 HACC 15/11/2021 Decision on the implementation of remote court proceedings
425/3312/17 HACC 13/12/2021 Decision on the implementation of remote court proceedings
425/3312/17 HACC 11/01/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 20/01/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 11/02/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 14/09/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 20/09/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 27/10/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 01/12/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 06/12/2022
425/3312/17 HACC 06/12/2022
425/3312/17 HACC 13/12/2022 Decision on the implementation of remote court proceedings
425/3312/17 HACC 09/01/2023 Decision on the implementation of remote court proceedings
425/3312/17 HACC 01/02/2023 Decision on the implementation of remote court proceedings
425/3312/17 HACC 14/02/2023 Decision on the implementation of remote court proceedings
425/3312/17 HACC 04/04/2023 Decision on the implementation of remote court proceedings
425/3312/17 HACC 07/07/2023 Verdicts
425/3312/17 HACC AC 14/08/2023 On leaving the appeal without action
425/3312/17 HACC AC 17/08/2023 Opening of appeal proceedings
425/3312/17 HACC AC 25/08/2023 Completion of the preparation and appointment of the appeal hearing
425/3312/17 HACC AC 19/09/2023
425/3312/17 HACC AC 04/10/2023
425/3312/17 HACC AC 04/10/2023 On changing the interim measure
425/3312/17 HACC AC 04/10/2023 On changing the interim measure
425/3312/17 HACC AC 14/12/2023
425/3312/17 HACC AC 14/12/2023
425/3312/17 HACC AC 10/01/2024
425/3312/17 HACC AC 24/01/2024
425/3312/17 HACC AC 31/01/2024 On changing the interim measure
425/3312/17 HACC AC 31/01/2024 On changing the interim measure
425/3312/17 HACC AC 12/03/2024
425/3312/17 HACC AC 12/03/2024
425/3312/17 HACC AC 22/04/2024
425/3312/17 HACC AC 22/04/2024
425/3312/17 HACC AC 25/04/2024
425/3312/17 HACC AC 25/04/2024
425/3312/17 HACC AC 25/04/2024
425/3312/17 HACC AC 25/04/2024
425/3312/17 HACC AC 15/05/2024
425/3312/17 HACC AC 15/05/2024
425/3312/17 HACC AC 15/05/2024
425/3312/17 HACC AC 15/05/2024
425/3312/17 HACC AC 07/08/2024 On changing the interim measure
425/3312/17 HACC AC 07/08/2024 On changing the interim measure
425/3312/17 HACC AC 03/04/2025
425/3312/17 HACC AC 03/04/2025
425/3312/17 HACC AC 04/06/2025
425/3312/17 HACC AC 04/06/2025
425/3312/17 HACC AC 05/08/2025
425/3312/17 HACC AC 05/08/2025
425/3312/17 HACC AC 11/08/2025
425/3312/17 HACC AC 11/08/2025
425/3312/17 HACC AC 16/12/2025
425/3312/17 HACC AC 16/12/2025
425/3312/17 HACC AC 17/12/2025 On non-granting of the appeal and leaving the verdict unchanged
425/3312/17 HACC AC 17/12/2025 Separate opinion of the HACC judge
425/3312/17 HACC AC 17/12/2025 On non-granting of the appeal and leaving the verdict unchanged
425/3312/17 CCC 03/02/2026 On the opening of cassation proceedings
425/3312/17 CCC 13/02/2026
425/3312/17 CCC 16/02/2026 On the opening of cassation proceedings
425/3312/17 CCC 23/02/2026 On the refusal to suspend the enforcement of the sentence / гіпотетично може може бути й про зупинення виконання вироку
425/3312/17 HACC 30/03/2026
425/3312/17 HACC 30/03/2026
425/3312/17 CCC 06/04/2026
425/3312/17 CCC 11/05/2026
425/3312/17 CCC 13/05/2026