You're reading: PGO investigating privatization of 99.44 percent of Research Institute of Electromechanical Devices

The Ukrainian Prosecutor General's Office (PGO) has opened criminal proceedings and launched an investigation into the sale by the State Property Fund (SPF) to a private company of a 99.44 percent stake in PJSC Scientific Research Institute of Electromechanical Devices (Kyiv) which is involved in defense industrial cooperation, Deputy Prosecutor General, Chief Military Prosecutor Anatoliy Matios wrote on his Facebook page.

According to him, the state stake in the company which develops and manufactures satellite communications devices for military use and components for the Ukrainian Javelin-Stugna antitank missile system was sold to PJSC Ventilation Systems on Sept. 30 for Hr 16 million.

According to Matios, the value of the state stake was greatly underestimated, saying that only 7 hectares of land in Sviatoshynsky district in Kyiv cost Hr 122 million.

“We have registered criminal proceedings, intensive investigations are being conducted, we are waiting for a court permit to conduct searches, we are in a hurry but we won’t have time,” he said on Oct. 7, adding that “today, at 5.00 p.m., a fund representative… will sign a contract for the sale [of our Stugna]…”

Ukroboronprom state concern confirmed that PJSC Scientific Research Institute of Electromechanical Devices is not of strategic importance for national defense but it does participate in defense cooperation and cooperates with a number of the state concern enterprises.