02.01.2025 Money laundering

Former Infrastructure Minister Kubrakov is now Umerov’s advisor in the Defense Ministry

The appointment of former Infrastructure Minister Oleksandr Kubrakov as an advisor to Defense Minister Rustem Umerov raises many questions. Kubrakov has repeatedly been at the center of corruption scandals related to the Big Construction, multibillion-dollar tenders, and the construction of fortifications over energy facilities. Let’s analyze the main scandals in which Kubrakov was involved.

Monopoly in “Big Construction”

Kubrakov, while heading the Ministry of Infrastructure, lobbied for the interests of certain companies that monopolized the infrastructure market. In particular, we are talking about Avtomagistral-Pivden, which received billions of hryvnias from the budget during the Big Construction. In 2018-2019 alone, the company signed 979 contracts worth UAH 17.61 billion.

This Odesa-based company is formally owned by Oleh Nalyvanyi and Valerii Korotkov. However, in the public space, it is associated with Odesa Mayor Gennadiy Trukhanov. “Avtomagistral-Pivden also actively cooperates with another road giant, Rostdorstroy, which implements similar schemes.

Both Avtomagistral-Pivden and Rostdorstroy have become a symbol of cartel collusion: the companies often win tenders through minimal competition. For example, in a tender for the construction of the H-31 Dnipro-Reshetylivka road, the former won because of a UAH 2 difference with its competitor.

The Avtomagistralya also received non-road contracts, in particular, for the construction of modular towns for IDPs. And in 2024, the company participated in public procurement alone for more than UAH 7.7 billion.

And while Avtomagistral takes away the largest contracts, performing work improperly and at inflated prices, law enforcement officers ignore any materials sent to them. For example, although the TU BES in Kyiv region registered information in the URPI under No. 72024111100000055, Part 4 of Article 191 of the Criminal Code of Ukraine, no action was actually taken.

Kubrakov was assisted by the “curators” of the presidential program, Golik and Tymoshenko, in lobbying for the interests of individual companies. These men successfully promoted close legal entities such as Budinvest Engineering LLC, Dorstroy PE, TIRAS and NOVEM Logistic LLC in billion-dollar tenders, providing cover and protection from officials.

New “front” for Kubrakov: Ukraine’s defense

Kubrakov’s appointment as an advisor to the Minister of Defense is perceived as an attempt to transfer schemes from the Big Construction to a new area. However, his past failures, such as the construction of dragon’s teeth in Sumy region, which remained in storage, or the failed defense of energy infrastructure (in particular, the Tripoli thermal power plant), raise doubts about the effectiveness of this personnel decision.

The appointment of Kubrakov as an advisor raises serious concerns.Were there no better candidates for the position?
At least without corruption scandals behind him

If the Minister of Defense fails to stop this trend, the supply and logistics sector of the Armed Forces may become another source of corruption.

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