The Case of the Elektrovazhmash Plant: UAH 13.7 Million in Losses Suffered by the State-Owned Enterprise

The Case of the Elektrovazhmash Plant: UAH 13.7 Million in Losses Suffered by the State-Owned Enterprise
Date of verdict 22 November 2022
Instance HACC
Stage of criminal proceedings Pre-trial investigation

On November 22, 2022, the HACC delivered a verdict against five people involved in a corruption scheme at the Elektrovazhmash plant: as a result of fraudulent sales of spare parts to a Lithuanian company, the plant lost UAH 13.7 million.

Mykola Korniichuk, former deputy director of the plant, was sentenced to 4 years in prison; three of his accomplices were also sentenced, and one defendant was acquitted. However, the HACC Appeals Chamber later closed the proceedings.

Mykola Korniichuk. Photo credit: Visti newspaper
Mykola Korniichuk. Photo credit: Visti newspaper

Thus, acting in the interests of the Czech intermediary company Ksanko s.r.o., the individuals involved denied the actual buyer — the Lithuanian company EER — a direct contract at the market price of around EUR 1.2 million by artificially demanding a substantial advance payment. Instead, the plant sold this equipment to the Czech intermediary Ksanko s.r.o. at an undervalued price of EUR 600,000, and on the same day the intermediary resold it to the Lithuanians at full value, with the goods shipped directly from a warehouse in Kharkiv to Lithuania.

 The Elektrovazhmash plant
The Elektrovazhmash plant

As a result of these actions, the state lost more than UAH 7.1 million in the form of lost profit.

This investigation was the third in a series of investigations into the abuses at Elektrovazhmash.

Korniichuk's actions were classified under Article 364(2) of the Criminal Code of Ukraine, and the actions of three other defendants under Article 27(5) and Article 364(2) of the Criminal Code of Ukraine.

Korniichuk and Bohdanov, former plant officials, were sentenced to 4 years in prison with a fine of UAH 17,000 and a ban on holding certain positions for 3 and 2.5 years, respectively. Oksana Yevdokymova was sentenced to 3.5 years in prison, a UAH 17,000 fine, and a 3-year ban on holding certain positions. Andrii Yevdokymov was imprisoned for 4 years with a similar fine of UAH 17,000.

At the same time, the HACC acquitted Oleksandr Hordii, one of the former deputy directors of the plant, who had been charged under Article 27(2), (3), (5) and Article 364(2) of the Criminal Code of Ukraine.

In addition, the HACC applied special forfeiture, recovering from Ksanko s.r.o. the illegal profit of EUR 217,306 (UAH 7.2 million) for the benefit of the state. The HACC Appeals Chamber overturned the HACC's verdict and closed the criminal proceedings against the defendants on the grounds that their actions lacked the elements of a criminal offense; it also lifted the measures securing the criminal proceedings (bail and asset seizures) in respect of these individuals.

Proceeding No. 52017000000000766
Subjects
  • Business
  • Other
Qualification
Article 191, part 5, Article 364, part 2, Article 209, part 3
Pre-trial cases №
  • 991/6712/20
  • 991/7311/21
  • 991/4118/20
  • 991/4404/20
  • 991/2615/20
  • 991/2677/20
  • 991/2620/20
  • 991/2614/20
  • 991/2500/20
  • 760/22782/19
  • 760/22781/19
  • 760/22783/19
  • 760/22778/19
  • 760/22780/19
  • 760/22779/19
Instance
The case is at the stage of pre-trial investigation
THE CASE OF THE ELEKTROVAZHMASH
Pre-trial investigation

In 2017, former Elektrovazhmash officials sold spare parts to a Czech company at a reduced price, which were later resold to a Lithuanian company at twice the price. As a result of these frauds, the state-owned enterprise lost UAH 13.7 million.

Article 364(2) of the Criminal Code of Ukraine

  • pic
    March 17, 2020
    the NABU-SAPO exposed five officials on organizing a criminal scheme that caused losses to the Elektrovazhmash plant
  • pic
    On March 20, 2020
    the HACC took Oleksandr Hordii, former deputy director of the plant, into custody with the possibility of UAH 1 million bail. Also, Andrii Yevdokymov was taken into custody with the possibility of UAH 8.4 million bail
  • pic
    November 22, 2022
    the HACC announced the verdicts against the defendants in the case. Korniichuk, Yevdokymov, and Bohdanov were sentenced to 4 years in prison, and Yevdokymov to 3.5 years with fines and additional penalties. Hordii, former plant official, was acquitted
  • December 13, 2022
    the HACC allowed convicted Oksana Yevdokymova to travel to the Czech Republic
  • pic
    October 31, 2023
    the HACC Appeals Chamber closed the criminal proceedings

Decisions from the Register

Case No. Court Decision type
991/6712/20 CCC 07/02/2024
991/6712/20 CCC 06/02/2024 On the opening of cassation proceedings
991/6712/20 HACC AC 31/10/2023 Decision on partial granting of appeals
991/6712/20 HACC AC 31/10/2023 Decision on partial granting of appeals
991/6712/20 HACC AC 11/10/2023 Completion of the preparation and appointment of the appeal hearing
991/6712/20 HACC AC 04/08/2023
991/6712/20 HACC AC 15/05/2023
991/6712/20 HACC AC 15/05/2023
991/6712/20 HACC 17/03/2023
991/6712/20 HACC AC 22/02/2023
991/6712/20 HACC AC 15/02/2023 Opening of appeal proceedings
991/6712/20 HACC AC 15/02/2023 Opening of appeal proceedings
991/6712/20 HACC AC 01/02/2023
991/6712/20 HACC 18/01/2023
991/6712/20 HACC 18/01/2023
991/6712/20 HACC 18/01/2023
991/6712/20 HACC 18/01/2023
991/6712/20 HACC AC 16/01/2023 Opening of appeal proceedings
991/6712/20 HACC AC 16/01/2023 On the return of the appeal
991/6712/20 HACC AC 02/01/2023 On leaving the appeal without action
991/6712/20 HACC 22/11/2022 Verdicts
991/6712/20 HACC 26/10/2022
991/6712/20 HACC 26/10/2022
991/6712/20 HACC 11/01/2022
991/7311/21 HACC 28/10/2021
991/4118/20 HACC 24/06/2020
991/4404/20 HACC AC 16/06/2020 On the refusal to open appeal proceedings
991/2615/20 HACC AC 20/05/2020
991/2615/20 HACC AC 20/05/2020
991/2677/20 HACC AC 14/05/2020
991/2677/20 HACC AC 14/05/2020
991/2620/20 HACC AC 13/05/2020
991/2620/20 HACC AC 13/05/2020
991/2615/20 HACC AC 30/04/2020
991/2614/20 HACC AC 29/04/2020
991/2620/20 HACC AC 28/04/2020
991/2677/20 HACC AC 28/04/2020
991/2620/20 HACC AC 28/04/2020
991/2500/20 HACC AC 15/04/2020 Decision on partial granting of appeals
991/2500/20 HACC AC 15/04/2020 Decision on partial granting of appeals
991/2500/20 HACC AC 13/04/2020
991/2500/20 HACC AC 13/04/2020 Completion of the preparation and appointment of the appeal hearing
760/22782/19 HACC AC 01/11/2019 Decision on partial granting of appeals
760/22782/19 HACC AC 01/11/2019 Decision on partial granting of appeals
760/22781/19 HACC AC 29/10/2019
760/22783/19 HACC AC 29/10/2019
760/22778/19 HACC AC 29/10/2019 Decision on partial granting of appeals
760/22783/19 HACC AC 29/10/2019
760/22781/19 HACC AC 29/10/2019
760/22783/19 HACC AC 25/10/2019 Decision on the implementation of remote court proceedings
760/22778/19 HACC AC 25/10/2019 Decision on the implementation of remote court proceedings
760/22781/19 HACC AC 25/10/2019 Decision on the implementation of remote court proceedings
760/22780/19 HACC AC 24/10/2019
760/22780/19 HACC AC 24/10/2019
760/22779/19 HACC AC 17/10/2019 Decision on partial granting of appeals
760/22779/19 HACC AC 17/10/2019 Decision on partial granting of appeals

Video streams

22 November 2022