07.09.2024 Tenders

How Ukraine’s energy infrastructure is being killed

Russian attacks on Ukraine’s critical infrastructure continue. Instead of strengthening protection and trying to save transformers and equipment received from partners, those responsible continue to steal, gaining catastrophic momentum. All of this is turning the lives of Ukrainians into survival: without electricity and water.

For reference, international organizations and partner states, including the European Investment Bank, the World Bank, the EBRD, the European Union, the United States, Japan, the Nordic Environment Finance Corporation, USAID and others, have pledged approximately USD 2.3 billion to protect Ukraine’s energy infrastructure. So where are the funds?

Who will be responsible for the loss of energy infrastructure and leaving citizens without heat in winter? Let’s find out.

First of all, the following entities are responsible for the protection of Ukraine’s energy infrastructure, including the construction of protective structures: The Cabinet of Ministers of Ukraine, represented by Prime Minister Shmyhal, officials of the Ministry of Energy of Ukraine (Minister – Herman Halushchenko), the Ministry of Community, Territorial and Infrastructure Development of Ukraine (former Minister, who was dismissed – Oleksandr Kubrakov), the State Agency for the Restoration and Development of Infrastructure of Ukraine, which, through public procurement, engage companies that are supposed to implement programs to protect the facilities, using budget funds.

After a series of scandals, Nayem and Kubrakov have already disappeared from this list, leaving behind dozens of destroyed facilities and billions of misappropriated funds. They have now been followed by the head of the state-owned company Ukrenergo, Kudrytskyi, who is also known to have contributed to the failure of the construction of protective structures at energy facilities.

According to Prozorro, last year Ukrenergo signed 70 contracts of the same type for the construction of protective structures without a tender. It cost almost UAH 4 billion. None of these contracts has been closed to date.

For example, UAH 350 million was awarded without any tender to an unknown company, Seven C.I. LLC, which has never had experience in such work.

But that’s not all.

Some contractors are still unable to receive the funds specified in the contracts, despite the full implementation of the agreements and the completion of the construction of defense facilities. For example, GK Avtostrada LLC has been waiting for the promised remuneration for a long time, but the authorized persons have been avoiding payments in every way possible. The same cannot be said about companies like the aforementioned Seven C.I. LLC, which immediately received the funds in full and failed to complete the planned work within a year.

It is worth noting that all the work is carried out at the expense of the partners, which were transferred to the accounts of JSC Ukreximbank and seem to have disappeared in an unknown direction.

In view of the above, suspicions arise about the deliberate nature of the actions of top officials to undermine the energy sector. So do the officials really want to preserve Ukraine’s credibility among the international community, as well as protect Ukrainians from the realities of a cold winter without heat, light and water?

The legal department of Non-Stop sent materials to a list of authorities, including representatives of partner countries, demanding a full check of the availability of funds in the accounts of Ukreximbank, the sources of their expenditures, including research of companies, volumes and grounds for transactions.

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