The Case of Embezzlement of UAH 2.87 Million in the Construction of Dugouts in the JFO Zone

The Case of Embezzlement of UAH 2.87 Million in the Construction of Dugouts in the JFO Zone
Start of the trial 1 July 2021
Instance HACC
Stage of criminal proceedings Preparatory proceedings

The NABU and the SAPO uncovered a corruption scheme related to the construction of fortifications (dugouts) in the Joint Forces Operation zone in Donetsk region in 2015.

Notices of suspicion in this case were served on:

  • the former Head of the Main Directorate of Operational Support, Lieutenant General of the Armed Forces of Ukraine
  • an official of the Major Construction Department of the Donetsk Regional State Administration.

According to the investigation, the corruption scheme began in March 2015, when, at the initiative of the then Head of the Main Directorate of Operational Support of the Armed Forces of Ukraine and the leadership of Sector “M” in Donetsk region, construction began on a platoon strongpoint codenamed “Experimental.” The construction was carried out haphazardly: without any contracts with the Ministry of Defense, without approved project documentation, and using ordinary metal shipping containers instead of reinforced concrete structures. When, in April 2015, the state officially allocated funds for fortifications and delegated the contracting authority functions to the Donetsk Regional State Administration, the defendants decided to “legalize” the already-built substandard facility to secure payment for the work on behalf of the private contractor Azovstalsbud.

Acting knowingly in the interests of the contractor, the Lieutenant General abused his position and pressured his subordinates. In particular, he issued a verbal order to approve project documentation “E-3007 AI,” which had been prepared backdated — after construction had already been completed. This documentation in effect merely recorded the use of metal containers, which directly contradicted the tactical and technical requirements of the General Staff, which called for durable precast reinforced concrete elements to protect troops from shelling. Despite objections from the Central Design Institute regarding the project's non-compliance with safety standards, the general continued to lobby for Azovstalsbud's interests, seeking to obtain favorable conclusions at any cost.

To conceal the violations, the Donetsk Regional State Administration official assured his superiors that the substitution of durable reinforced concrete with ordinary metal containers had allegedly been formally approved by the military at the outset of the works. In December 2015, the Lieutenant General confirmed this with his signature, which enabled payment to be transferred to the contractor without valid grounds. As a result of these joint actions, the state suffered losses totaling UAH 2,871,327.65. In effect, funds were paid for a facility that was incapable of fulfilling its primary purpose — protecting the lives of soldiers on the front line.

The actions of both defendants are charged under Article 364(2) of the Criminal Code of Ukraine.

Concurrently, the Ministry of Defense of Ukraine also filed a civil claim in the case.

In February 2026, the HACC panel of judges granted the motion of the former Armed Forces official and released him from criminal liability due to the expiration of the statute of limitations under Article 49 of the Criminal Code of Ukraine (more than ten years had elapsed since the last episode on December 8, 2015). The proceedings against him were closed. The court also lifted the seizure on his apartment and dismissed the civil claim without consideration.

Proceeding No. 52020000000000484
Case No. 991/4382/21
Date the hearing was scheduled 05/07/2021
Subject
  • Other
Qualification
Article 191, part 5, Article 364, part 2
Pre-trial cases №
  • 991/2345/21
  • 991/3898/21
  • 991/4060/21
Merged with
Instance Key parties
HACC 01/07/2021 Panel of judges: Tkachenko O.V.
THE CASE OF EMBEZZLEMENT IN THE CONSTRUCTION OF DUGOUTS IN THE JFO ZONE
Preparatory proceedings

The former Head of the Main Directorate of Operational Support of the Armed Forces of Ukraine and an official of the Major Construction Department of the Donetsk Regional State Administration are suspected of embezzling UAH 2.87 million in the construction of dugouts in the JFO zone.

Article 364(2) of the Criminal Code of Ukraine

  • pic
    March–December 2015
    Commission of the alleged offenses
  • March 2018
    Pre-trial investigation opened with respect to the Donetsk Regional State Administration official
  • July 29, 2020
    Pre-trial investigation opened with respect to the former Armed Forces official
  • pic
    April 29, 2021
    Notices of suspicion served on the defendants
  • pic
    June 30, 2021
    Indictment referred to the court
  • July 1, 2021
    Preparatory hearing in the case scheduled
  • July 13, 2021
    The criminal proceedings against both defendants consolidated into a single case
  • July 22, 2021
    Case scheduled for trial
  • February 11, 2026
    The HACC released the former general from criminal liability, closed the proceedings against him, and lifted the seizures on his property

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