25.06.2025 Money laundering Tenders

Billions on the Roads to Offshore: how the Motorway South Threatens Ukraine’s National Security

Власник держпідрядника "Автомагістраль-Південь" отримав підозру через привласнення 240 млн гривень

Today, Kyiv’s Pecherskyi District Court will hold a hearing on the choice of a preventive measure against Yuriy Boyko and Oleksandr Boyko, the beneficial owner of Avtomagistral-Pivden LLC. This company, which dominates the road construction market, is at the center of corruption scandals that threaten Ukraine’s national security.

From embezzling billions in tenders to fictitious works in the occupied territories, we are looking into how Avtomagistral-Pivden has been profiting from the state budget for years.

What do you know about Avtomagistral-Pivden LLC?

Avtomagistral-Pivden LLC is an Odesa-based company founded in 2006 by Oleh Nalyvanyi and Valerii Korotkov. Since 2023, it has been controlled by businessman Oleksandr Boyko, who is associated with Odesa Mayor Hennadii Trukhanov and his party “Trust the Deeds”. The company is headed by Mykola Tymofeev.

Over the 20 years of its existence, Avtomagistral-Pivden has built more than 4,000 kilometers of roads, hundreds of bridges and artificial structures, receiving funding from international institutions such as the EBRD, World Bank and USAID.

The company positions itself as a leader in the Ukrainian road construction market with a unique team of specialists. However, this seemingly “successful” story is hiding numerous corruption allegations. In 2020-2024 alone, Avtomagistral-Pivden won tenders for UAH 147 billion, much of which, including from international partners, was stolen through price gouging, fictitious work, and offshore transfers, according to law enforcement.

Today’s hearings in the Pechersk court concern accusations against Yuriy and Oleksandr Boyko of involvement in corruption schemes that, according to the investigation, threaten national security. This is the official position of the company itself: “We are being persecuted to destroy us.” “Avtomagistral-Pivden issued a statement claiming that the actions of law enforcement officers are a planned attack on the company, which allegedly threatens the economy and security of Ukraine. According to them, the suspension of the company’s operations could have catastrophic consequences: disruption of the construction of fortification lines in Donetsk region, problems with military logistics and protection of energy infrastructure.

The company insists that its persecution has no evidence base, and that the criminal proceedings are an attempt to destroy one of the key market players.

However, Avtomagistralya-Pivden’s statements are nothing more than another attempt to put pressure on the investigation and public opinion. The company has repeatedly resorted to the so-called “jeans” – paid media materials that are supposed to whitewash its reputation. High-profile scandals, billion-dollar contracts, and close ties to Odesa’s elites speak for themselves. The scale of the corruption the company is suspected of is only growing, and its attempts to portray itself as a victim look like a desperate maneuver.

For years, we have been investigating the activities of Avtomagistralya-Pivden and its affiliates, and have uncovered numerous facts of manipulation of tenders, price gouging and fictitious works that have caused billions of hryvnias in losses to the state. Our investigations led to the opening of several criminal proceedings, in particular, under No. 42024160000000123 (Odesa Regional Prosecutor’s Office, part 1 of Article 212 of the Criminal Code of Ukraine) and No. 42024000000001268 (Prosecutor General’s Office, part 4 of Article 191 of the Criminal Code of Ukraine). We continue to monitor these cases to prevent corrupt officials from avoiding responsibility.

Tender victories of Avtomagistral-Pivden: from roads to water pipes

“Avtomagistral-Pivden is a key contractor for government tenders, including those under the Big Construction program initiated by the President. In 2020, the company won tenders worth UAH 28.8 billion, which is more than the total contracts of its three competitors. In 2023, it received contracts worth UAH 25.3 billion, and in 2024 – more than UAH 640 million. Among the key tenders that raise suspicions:

  1. Construction of a transport interchange in Mykolaiv region for UAH 1.936 billion. The tender was held with minimal competition, and the prices for the works were inflated.
  2. Maintenance of national roads for UAH 933.9 million.
  3. Construction of a bridge over the Southern Bug River in Mykolaiv for UAH 2.286 million. According to our sources, the scope of work performed does not correspond to the one stated in the documents.
  4. Maintenance of the M-05 Kyiv-Odesa highway for UAH 852 million. This contract raised questions due to inflated prices for materials.
  5. Repair of five bridges on the Skole-Slavske road in Lviv region for UAH 139.9 million. A 2021 tender for UAH 59.7 million was terminated due to non-performance, but in 2023 the company received a new contract with a significantly higher value, citing “rising prices for construction materials” and the replacement of reinforced concrete with polymer concrete.

These tenders were often held without proper competition, and in some cases, Avtomagistral-Pivden was the only bidder. For example, in a tender for bridge repairs in Lviv region, the company did not start work, but in 2023 received a new contract for a much larger amount.

Scandals in Kharkiv region: roads in the occupied territories

In the Kharkiv region, Avtomagistral-Pivden, along with other related contractors such as Eurobud Plus LLC, Slavdorstroy LLC, and Rostdorstroy LLC, participated in schemes to launder budget funds through the Prozorro system. The companies won tenders for road maintenance and repair, but much of the work was either not performed or was carried out in the occupied territories or in the war zones where verification was impossible.

These expenses include:

  1. UAH 257 million for road maintenance in Kharkiv region.
  2. 211 million UAH for road maintenance in Krasnohrad district.
  3. 214 million UAH for road maintenance in Chuhuiv district, where military operations are ongoing.

Water supply for Mykolaiv: corruption in times of crisis

Residents of Mykolaiv have not had access to quality drinking water for more than a year, but this has not stopped officials and contractors from turning the problem into a source of enrichment. The Mykolaiv Oblast Infrastructure Restoration and Development Service ordered the construction of a water intake from the Pivdennyi Buh River and a main water supply system for UAH 7.44 billion without open tenders. Among the “winners” was Avtomagistral-Pivden LLC, which received a tender for UAH 320 million to build the Ingulets-Southern Reservoir water pipeline for Kryvyi Rih due to the consequences of the destruction of the Kakhovka HPP.

In July 2024, the head of the Mykolaiv Regional Water Management Company, Vitaliy Kim, announced that the budget would be optimized to UAH 3 billion, but in September, Prime Minister Denys Shmyhal announced a new figure of UAH 8.8 billion. At the same time, the water supply for Mykolaiv residents has not yet been restored.

Conclusions

The hearings in the Pechersk Court on June 25, 2025, could be a turning point in the fight against corruption in the infrastructure sector. However, without pressure from the public and journalists, these cases risk being “hushed up.”

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