The Security Service of Ukraine (SBU) and the Office of the Prosecutor General have uncovered a massive corruption scheme involving the construction of protective structures for critical energy infrastructure in the Zakarpattia region. According to investigators, Yuriy Maksymenko, head of the Regional Service for Infrastructure Restoration and Development, approved the procurement of construction materials at artificially inflated prices. As a result, nearly 105 million UAH (approximately $2.5 million USD) was embezzled from the state budget, leaving a vital strategic facility unprotected against potential Russian airstrikes.
According to Prosecutor General Ruslan Kravchenko, the infrastructure official possessed legitimate, competitive commercial offers from suppliers but deliberately approved a heavily inflated budget presented by the contractor. In one notable instance, specialized drilling tools for the project were reportedly purchased at five times the market rate.
In March 2024, Maksymenko signed off on completed work completion certificates based on these anomalous estimates. Investigators state that the price difference of 104.9 million UAH was funneled into shadow accounts through a network of controlled shell companies. Due to the siphoning of these funds, construction has ground to a halt, leaving the power substation vulnerable and unfinished.
The general contractor for the project was the Ivano-Frankivsk-based company PBS LLC. While officially registered under Ivanna Nepyk, law enforcement links the company to former Member of Parliament Oleksandr Shevchenko. Managers controlled by Shevchenko are currently developing infrastructure for the Bystrytsia and Turbat eco-resorts—an extension of the Bukovel ski resort complex managed by his close business partner, Ihor Palytsia. The allocation of 9 billion UAH from the state budget for these resort projects has already triggered intense public backlash.
Background: Between 2021 and 2025, PBS LLC secured state contracts totaling an astronomical 15.8 billion UAH. However, the company’s primary registered expertise lies in road and highway construction rather than complex reinforced concrete engineering.
According to the SBU, PBS LLC lacked the necessary qualifications for safeguarding energy sites. Despite this deficit, the firm received an upfront advance of 700 million UAH, representing over 13% of the total contract value.
At the time of the alleged offenses, Yuriy Maksymenko operated under the jurisdiction of the State Agency for Infrastructure Restoration and Development. The agency was then headed by Mustafa Nayyem, who resigned on June 18, 2024. The overseeing Ministry for Communities, Territories, and Infrastructure Development was led by Oleksandr Kubrakov, who was dismissed by Ukraine’s parliament on May 9, 2024.
The investigation is ongoing as authorities work to establish the full scope of the conspiracy. The suspects face severe penalties under Ukrainian law for large-scale embezzlement and misappropriation of state funds during wartime.