The Supreme Anti-Corruption Court on Wednesday evening arrested former advisor to the President’s Office, Artem Shylo, for suspected involvement in a group that allegedly embezzled Hr. 94.7 million ($2.4 million).
The group allegedly charged Ukrzaliznytsia (Ukrainian Railways) nearly twice the going rate for transformers.
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Shylo had been detained on Tuesday, April 3, Kyiv Post sources in law enforcement said.
He was either to be held for two months in jail or released on Hr.30 million ($770,000) bail.
The press office of the court stated that he exercised his right to be released on bail. However, the court did not disclose who posted the bail. As a condition of his release, Shylo is prohibited from leaving the country and contacting other individuals involved in the criminal case.
Ukraine’s National Anti-Corruption Bureau (NABU) reported on Telegram Tuesday that it, along with the Specialized Anti-Corruption Prosecutor's Office (SAPO), had seven suspects in the corruption scheme which caused losses for Ukrzaliznytsia from 2022-2024.
Shylo allegedly arranged the preparation and submission of a letter “Regarding Threats to State Security” to the State Security Council, which was used to reject offers from other procurement participants with better prices.
As NABU reported, the contract “winner” used a company registered in Bulgaria to purchase transformers from a manufacturer in Uzbekistan and resell them at inflated prices to Ukraine.
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According to law enforcement officials, the “winning” company is controlled by a Belarusian citizen with ties to Russia.
According to NABU, the suspects in the scheme included the leader of the group, two more members, the former deputy head of the Ukrzaliznytsia “Production Support Center” branch, Ukrzaliznytsia’s deputy director for economic and information security, a person acting on behalf of the owner of the supplier company, and a subordinate of the group’s leader.
Shylo, whom Kyiv Post sources suspected of being the leader of the group, had also worked for the Security Service of Ukraine (SBU) – Ukraine’s primary intelligence, law enforcement, and security agency.
Yevhen Cherniak, the head of Global Spirits, the largest alcohol holding in Eastern Europe, celebrated Shylo’s detention, saying that unfounded criminal cases against his company had been approved by Shylo.
“Fabricated and unissued suspicions, over a hundred searches, pressure documented on video, audio, intimidation—and not a single piece of evidence, not a single violation throughout the entire concocted case,” Cherniak wrote on Facebook Tuesday.
“Apart from Global Spirits, another 400 Ukrainian businesses are under pressure from similar cases; now it will definitely become easier. Justice exists; we just need to fight for it…Other corrupt individuals – be prepared. No one will forget or overlook anything; everything will be done according to the law, not quickly, but surely!”
Shylo had served as an adviser to the Office of the President of Ukraine from 2021 to 2022. He had advised Oleg Tatarov, the deputy head of Zelensky’s office.
Kyiv Post sources said that Shylo’s arrest might have reverberations for Tatarov and that a segment of the President’s Office team might attempt to shield Shylo from prosecution.
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