Shila Will Stand Trial in the Ukrzaliznytsia Back-Office Case

The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) have filed an indictment with the court against the organizers of the so-called “back office” of JSC “Ukrzaliznytsia.” Among those implicated are Artem Shilo, a former adviser to the Office of the President and former deputy head of a Security Service of Ukraine (SBU) department, a businessman, and two other individuals.

According to investigators, the participants in the scheme used companies under their control to ensure victory in Ukrzaliznytsia tenders and supplied products at inflated prices.

During the procurement of cable and wire products in 2021–2022, the company’s losses exceeded 140 million hryvnias. According to the National Anti-Corruption Bureau of Ukraine (NABU), Ukrzaliznytsia lost nearly another 95 million hryvnias due to the procurement of power transformers in 2022–2024.

Separately, the investigation uncovered instances of money laundering involving funds obtained through these schemes. According to law enforcement officials, part of the illicit proceeds was used to purchase expensive real estate.

NABU emphasizes that the final assessment of the defendants’ actions must be made by the court. They are presumed innocent until the verdict becomes final.

Source: NABU.

As a reminder, Yaroslav Zheleznyak, a member of parliament and deputy chair of the Verkhovna Rada’s Finance and Tax Committee, released an investigation in which he claims that the preparation of the analytical “Mindich dossiers” at the Bureau of Economic Security (BEB) was coordinated by Artem Shilo.  

In April 2024, NABU and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) charged him in a case involving the embezzlement of funds during procurement for Ukrzaliznytsia; the case also involves several former SBU employees and entrepreneurs involved in government procurement.