The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAP) have formally charged a former deputy minister with inciting a state enterprise official to misuse their position. While the official’s name has not been disclosed, evidence suggests it pertains to Vasyl Lozynskyi.
Additionally, the state enterprise official has also been charged with abuse of power. The case centers around funds allocated by the Cabinet of Ministers in the summer of 2022 for the procurement of equipment aimed at providing alternative sources of light, heat, and water supply during the winter months, particularly in light of damage to critical infrastructure.
According to NABU, the former deputy minister acted in the interests of a specific supplier, persuading the deputy director of the state enterprise to enter into a contract for equipment at a price 30% above the market rate. In return, he allegedly promised the deputy director a position as the enterprise’s director.
The former deputy minister’s actions have been classified under Article 27, Part 4, and Article 364, Part 2 of the Criminal Code of Ukraine, while the state enterprise director is charged under Article 364, Part 2.
Currently, another case involving Lozynskyi is under consideration by the High Anti-Corruption Court (VAKS). This case involves accusations against him, his associate, and other accomplices for soliciting and receiving a bribe of $400,000.
Background on Lozynskyi’s Arrest
On January 22, 2023, it was reported that Lozynskyi had been detained for allegedly accepting a $400,000 bribe and was subsequently dismissed from his position. SAP alleges that he had been lobbying for contracts with companies under his control, which sold equipment at inflated prices.
Following this, Deputy Prime Minister Oleksandr Kubrakov ordered the preparation of documents for Lozynskyi’s dismissal, which the Cabinet subsequently enacted.
On January 24, the High Anti-Corruption Court placed Lozynskyi under round-the-clock house arrest, suspecting him of receiving the bribe in exchange for facilitating contracts with affiliated companies for equipment supply.
On January 26, Prosecutor Oleksandr Omelchenko announced that SAP would appeal the house arrest ruling.
On February 17, the Appeals Chamber of the High Anti-Corruption Court granted the prosecutors’ appeal, imposing a detention order on Lozynskyi with the option to post bail of 50 million hryvnias.
Ukrainian authorities have charged a former deputy minister and a state enterprise official with abuse of power related to inflated procurement contracts. The case highlights ongoing corruption investigations amid the country's recovery efforts.