Ukraine’s State Bureau of Investigation (DBR) detained former Volodymyr Kudrytskyi, the former CEO of the state-owned power grid operator Ukrenergo, in the Lviv region over alleged fraud involving state enterprise funds, DBR reported in a press release on Oct. 28.
According to investigators, the scheme was organized by Lviv businessman Ihor Hrynkevych, who was previously implicated in a scandal over buying low-quality military clothing for more than Hr.1 billion (around $23.7 million) for the armed forces.
Hrynkevych faces charges for organizing fraud, document forgery, and money laundering under Ukraine’s criminal code. Kudrytskyi is charged with large-scale fraud in collusion with others. Convictions could bring up to 12 years in prison and asset confiscation, according to the DBR.
The State Bureau of Investigation is preparing a court request to keep Kudrytskyi in pre-trial detention. The investigation is ongoing under the supervision of the Office of the Prosecutor General.
According to authorities, in 2018, during tenders for reconstruction of substation fences in the Southern and Western energy systems, Kudrytskyi, then deputy director for investments at “Ukrenergo,” colluded with private company representatives.
The tenders resulted in two contracts totaling over Hr.68 million ($1.61 million). The state company advanced more than Hr.13.7 million ($324,700) to the contractor, which the suspects allegedly took without intending to fulfill the agreements.
Investigators also found forged documents used to register a company involved in the scheme. The suspects tried to disguise the stolen funds as legitimate through financial operations, the release says.
On Tuesday, Oct. 21, DBR raided the home of Kudrytskyi. According to Ukrainska Pravda sources, the investigation focuses on claims that Kudrytskyi inflated the amount of forest cleared and the costs of contractor work on several energy transmission projects.
Kudrytskyi issued a response to Tuesday’s raids of his home and car, calling the searches “absurd” and accusing law enforcement officials of having a “political rather than legal motive.”
Kudrytskyi said he was not formally accused of anything and denied any link to illegal logging or inflated contracts mentioned in the case.
“Even if I tried, I couldn’t find how I’m related to forest clearing,” he said. “There was nothing about it in the documents they showed me.”
H2::What is Ukrnegro and who is Volodymyr Kudrytskyi?
Ukrenergo is a state-owned electricity transmission system operator overseen by Ukraine’s Ministry of Energy. The company plays a critical role in maintaining the balance between Ukraine’s electricity generation and consumption.
Appointed as CEO in 2020, Kudrytskyi oversaw a period of corporate governance reform that included the creation of a supervisory board.
However, Kudrytskyi allegedly became a target of political rivalry with then-Energy Minister Herman Halushchenko, which some say may have contributed to his dismissal on Aug. 30, 2024.
The official reason for Kudrytskyi’s removal was his alleged failure to complete defensive constructions around high-voltage grid facilities – an omission that purportedly led to power supply disruptions following Russian missile strikes on Aug. 26.
However, supervisory board members Daniel Dobbeni and Peder Andreasen disputed the official explanation. In their resignation statement, they asserted that Kudrytskyi’s dismissal was primarily political rather than performance-related.
The situation later shifted once again. After consultations between the Ministry of Energy, the Ministry of Economy, and foreign members of Ukrenergo’s supervisory board, the Energy Ministry confirmed that Vitaliy Zaychenko would remain as chairman.
The decision, endorsed by the supervisory board, aligned with the positions of the National Energy and Utilities Regulatory Commission, the National Securities and Stock Market Commission, and the Kyiv Commercial Court, which had previously suspended the registration of Zaychenko’s dismissal.