A quarry near Uzhhorod cost the state nearly a billion in losses
Law enforcement officials have uncovered a scheme involving the illegal extraction of minerals at a deposit near Uzhhorod. According to the investigation, the state suffered losses of over 949.8 million hryvnias, and four participants in the scheme—including a member of the Transcarpathian Regional Council—have already been notified of the charges against them.
During the investigation, conversations among the suspects were also recorded in which they discussed how to continue exploiting the deposit despite lawsuits filed by the prosecutor’s office. These conversations also mentioned the Verkhovna Rada’s Temporary Investigative Commission, which had been examining the situation surrounding the deposit. Prosecutor General Ruslan Kravchenko stated that these circumstances will be subject to a separate legal assessment.
Instead of exploration, commercial production began
According to investigators, the scheme began in 2024. At that time, the company received a permit for geological exploration and pilot-scale development of a 59-hectare field. However, according to law enforcement officials, the exploratory work quickly turned into large-scale extraction. According to the investigation, four people were involved in the scheme:
- a member of the Transcarpathian Regional Council, who was a co-founder of the company;
- the company’s director;
- the chief engineer, who organized the extraction;
- the director of another company through which the andesite was sold.
All four have been notified of the charges against them. They are accused of illegal mining of mineral resources, which resulted in serious consequences, as well as the laundering of proceeds obtained through criminal activity. This relates to Part 4 of Article 240 and Part 3 of Article 209 of the Criminal Code of Ukraine. The issue of preventive measures for the suspects is currently being decided.
About 10 hectares of forest were destroyed
According to the investigation, approximately 10 hectares of forest were destroyed during the quarry’s operations. In addition, forest land was allegedly used without authorization to lay power lines. In total, approximately 2.6 kilometers of power lines were laid, and 52 utility poles were installed.
Rock extraction was carried out using explosives. At the same time, as law enforcement officials note, the required environmental impact assessment was not conducted. The investigation documented at least 13 instances of drilling and blasting operations. In total, according to law enforcement officials, approximately 417,000 cubic meters of minerals were illegally extracted.
Some of the andesite may have been sold for cash
According to the investigation, violations were uncovered not only during extraction but also during the sale of the products. In its tax reports, the company stated that it had sold over 774,000 metric tons of andesite. At the same time, law enforcement officials discovered an additional approximately 353,000 metric tons of unaccounted-for product.
Its value is estimated at approximately 247 million hryvnias. According to investigators, this product may have been sold for cash. Based on the results of forensic examinations, the total amount of losses incurred by the state exceeds 949.8 million hryvnias. Ruslan Kravchenko stated that this specific amount was the result of an assessment of the damage caused by the illegal activities.
The case referenced the Verkhovna Rada’s Temporary Investigative Commission
The investigation paid particular attention to conversations among the scheme’s participants. According to the Prosecutor General, law enforcement officials recorded the suspects discussing the possibility of continuing to use the field despite the prosecutor’s office’s lawsuits. These conversations also mentioned the Verkhovna Rada’s Temporary Investigative Commission, which is addressing the situation surrounding the field.
So far, there is no assertion that members of the Temporary Investigative Commission were participants in the illegal scheme. The reference is specifically to mentions of the commission in the conversations among those implicated in the case. Kravchenko stated that these circumstances will be subject to a separate legal assessment based on the evidence gathered. “I appeal to the People’s Deputies of Ukraine: the Verkhovna Rada’s Temporary Investigative Commissions, in which you serve, generally assist the investigation. Thank you for this work,” the Prosecutor General said.
At the same time, he urged that the TSC mechanism not be used as a means of protecting a company if its activities have indeed caused such significant losses to the state. “The TSC mechanism must continue to serve as a tool for establishing the truth, rather than becoming a cover for a company whose activities have caused the state losses amounting to nearly a billion,” Kravchenko emphasized.
What’s Next
Currently, four individuals involved in the case have been designated as suspects. Their guilt has not yet been established by a court, and the final facts of the case must be confirmed during further investigation and court proceedings.
Law enforcement agencies continue to gather evidence regarding illegal mining, the sale of unaccounted-for andesite, and the possible laundering of the proceeds. Separately, the circumstances related to references made by the Temporary Investigative Commission of the Verkhovna Rada in the suspects’ conversations are to be examined. This was reported by Prosecutor General .
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