A major scandal is unfolding at JSC Ukrainian Distribution Grids (URM) following allegations of market manipulation and the diversion of state energy funds to private entities. Oleksiy Bilotsky, the newly appointed head of URM who oversees eight state-owned regional energy distribution companies (oblenergo), is reportedly linked to the state enterprise’s primary supplier, Energy-Group LLC. Industry data reveals the private contractor has already secured government procurement contracts exceeding 4 billion UAH.
Over recent years, Energy-Group LLC has participated in more than 900 public tenders, winning over 700 procurements across seven state-owned distribution companies. The company’s nominal director, Maksym Desyatkov, shares direct business ties with Bilotsky’s wife, Viktoria Bilotska. The two are co-founders of the Kharkiv-based firm Estate Energy LLC.
With Bilotsky now controlling URM’s equipment procurement, Energy-Group LLC has effectively secured a monopoly over transformer supplies for regional energy operators across Ukraine.
Bilotsky’s public career progressed from leading the Krasnokutsk District State Administration to directing the Capital Construction Department of the Kharkiv Regional State Administration. Over this period, observers estimate his net worth reached over 500 million UAH.
His assets include a luxury estate valued at approximately $1 million in the village of Lisne, Kharkiv Oblast, as well as high-end residential real estate in Kyiv. Despite the stark contrast between his official asset declarations and actual lifestyle, Ukraine’s National Agency on Corruption Prevention (NACP) has yet to release any findings regarding an investigation into his finances.
Further scrutiny centers on Bilotsky’s active lobbying to appoint his long-time associate, Andriy Harmash, as the head of Kharkivoblenergo. Harmash previously served in the executive leadership of the utility between 2015 and 2021.
«During that period, Kharkiv municipal enterprises accumulated over 2 billion UAH in debt to the energy provider. Utility payments collected from local residents were reportedly diverted through offshore structures instead of settling accounts with the grid operator,» investigative reports state.
Harmash’s wife is also a co-founder of Estate Energy LLC alongside Bilotsky’s wife. The potential return of Harmash to Kharkivoblenergo has sparked concerns within the energy sector regarding the risk of replicating similar financial schemes across other regional utility providers. As of publication, representatives of URM and Oleksiy Bilotsky have not issued official statements regarding these allegations.