03.12.2024 Declaration Kharkiv Tenders

How Kharkiv MP Subbotin hides kilograms of gold and precious metals from NABU

Viktor Subbotin is the CEO of Ukrainian Energy Machines JSC and a member of the Kharkiv Regional Council from the Servant of the People party, who is not only likely to be involved in large-scale corruption schemes, but also does not like the disclosure of the truth in the media. For the latter reason, Ukrenergomashyny, headed by the politician, filed a lawsuit against the NGO Non-Stop and demanded that all previously published information be removed.

I wonder on whose initiative the lawsuit was filed? Was it Subbotin’s initiative, or with the assistance of the head of the Kharkiv Regional Council, Yegorova-Lutsenko, whose activities we have been actively covering?

What do you know about Subbotin?

Subbotin controls a number of companies that are unprofitable according to the documents, but in fact serve as instruments for the implementation of fictitious transactions. Among them:

  • “FC INVESTA” LLC
  • PE “UNICOM”
  • MEGASOFT LLC
  • SE “SO ”O-MEGA”
  • TUDU CORPORATION LTD.
  • PJSC “M-INVEST”

These companies create the appearance of legitimate activities, but in reality they are engaged in money laundering. For example, the financial documentation of the latter shows that they are unprofitable.

Subbotin’s wealth

Subbotin declared 19.1 kilograms of gold purchased before 2013. The total value is estimated at UAH 32,674,490.55.At the time of the audit, the MP explained that the documents confirming the acquisition of this asset were “lost.” At the same time, the NACP was unable to establish the origin of the funds for which the asset was purchased.

Interestingly, the MP confirmed some of the gold purchased since 2013 with bank receipts.However, the explanations for the previous period were not sufficient.

  • The NACP also found that the MP’s wife, Olena Subotina, received a gift of USD 210 thousand, but this information was not included in the declaration. In addition, the MP failed to declare it:
  • Premium class watches (Audemars Piguet, Patek Philippe, Harry Winston) and jewelry of famous brands (Graff, Pasquale Bruni).
  • Precious metals worth more than UAH 71 million, including 45 kg of gold, some of which the MP explains as “lost”.
  • Wife’s account in a foreign bank with a balance of USD 4.2 million and UAH 27.51 million.

Among Subotin’s declared income for 2021:

  • Salary at Ukrainian Power Machines JSC – UAH 1,626,301.
  • Scholarship of the honorary citizen of Kharkiv – UAH 362,500.
  • Lifetime scholarship of the honorary citizen of Kharkiv region – UAH 100,557.
  • Interest from Megabank – UAH 5,833.

The most questionable is the declared gift from Nina Petrivna Yatsenko in favor of the MP’s wife in the amount of UAH 5,728,422. The sources of this gift also remain unclear.

Interestingly, the NACP’s checks of the declarations for 2022 and 2023 did not formally reveal any violations.
However, the certificates (No. 112/24) state that a number of items could not be verified.This raises serious suspicions about the objectivity of the inspections and possible cover-ups by the NACP. After all, what prevented the investigators from detecting violations?It seems that the anti-corruption officials deliberately ignore the discrepancy between the declared income and the amount of assets acquired.

Although the NABU has launched a pre-trial investigation in proceedings No. 52024000000000449 under Part 1 of Art. 368-5 of the Criminal Code of Ukraine, there are no real results so far.

Loan scams worth 2.3 billion with Subbotin’s participation

Abusing the war, Subbotin’s companies are actively using judicial mechanisms to avoid repayment of their debts. In particular:

  • Challenging loan obligations.
  • Removing encumbrances from property pledged as collateral.

This makes it impossible to sell pledged property to cover debts and creates additional costs for the Deposit Guarantee Fund.

In particular, the Deposit Guarantee Fund has already paid over UAH 3.52 billion to affected depositors of MEGABANK. The actions of the companies associated with Subbotin cause financial losses not only to the bank, but also to the public interest.
Despite the debt restructuring program introduced, no attempts have been made to settle the debt.

“У“Ukrenergomashiny and the monopoly on Ukrhydroenergo’s contracts

The tender proposals from Ukrhydroenergo are written in such a way that the only participant, and therefore the winner, is JSC Ukrenergomashiny.

For example, Ukrenergomashiny has already received a list of wins in tenders, including:

Restoration of the G-10 hydro turbine equipment damaged as a result of the armed aggression of the Russian Federation for the Kremenchuk HPP branch of Ukrhydroenergo for a total amount of UAH 15,746,330.49.

Restoration and manufacture of parts and components of hydraulic unit No. 5 damaged as a result of the armed aggression of the Russian Federation for the Seredniodniprovska HPP branch of Ukrhydroenergo for a total amount of UAH 63,486,261.62.

Services for the inspection of the second part of the damaged hydraulic units (No. 15-18) of the Dniprovska HPP branch of Ukrhydroenergo to determine the scope of restoration work as a result of the armed aggression of the Russian Federation) for a total amount of UAH 2,036,590.46.

It should be reminded that the shareholders of JSC Ukrenergomashiny with large stakes are the State of Ukraine (represented by the entity managing state-owned objects: (the Cabinet of Ministers of Ukraine) (share of 75.2241%), Valandin V. V. (share of 5.598%) and LLC AMC Svarog Asset Management.

So, does it mean that the Cabinet of Ministers is “in the know” about all the frauds during public procurement?

We are continuing our research and waiting for the court hearing of the case filed by Ukrenergomashyny JSC against NGO Non-Stop. In addition, we have already submitted a number of materials to law enforcement and anti-corruption agencies. So, we will continue soon.

Did you witness a crime?

Let us know about it. We will help protect the violated rights!

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