The BEB investigation established that a group of companies associated with the head of the Zaporizhzhia OVA, Ivan Fedorov, received UAH 66 million without tenders and have already embezzled more than UAH 6.4 million due to inflated prices for barbed wire and posts.
While thousands of Ukrainian soldiers are dying defending the Zaporizhzhia direction, the head of the Zaporizhzhia OVA, Ivan Fedorov, has organized his own "business" in the construction of life-saving trenches for fighters. A high-profile case investigated by the Bureau of Economic Security sheds light on a scheme in which the main beneficiaries are his old acquaintances from occupied Melitopol.
Fedorov's Melitopol Cartel: from city asphalt to regional trenches
Sources in ZOVA, USR data, and public records clearly point to two of Ivan Fedorov's "favorite" contractors since his time as mayor of Melitopol: LLC "MELSITI" (USR 41490056) and LLC "PROJECT AND CONSTRUCTION COMPANY "AKVI-BUD"" (USR 41400018). During his reign in the city, these companies won almost all major tenders, regularly getting into corruption scandals.
With Fedorov’s arrival as head of the OVA in 2024, these companies, which had previously had virtually no activity and paid no taxes, suddenly gained access to multi-million-dollar state contracts in the Zaporizhia region. Characteristically, Fedorov tried to keep the names of the companies building the fortifications secret, under the guise of “state secrets,” although he himself reported daily on social media about the progress of the work.
Theft scheme: how 6.4 million hryvnias were withdrawn
February 2024 became a key month for the “Melitopol cartel.” The Melitopol Regional State Administration (controlled by Fedorov) concluded direct contracts with LLC “AKVI-BUD” and LLC “MELSITY” for the amount of 66,083,593.89 hryvnias (No. 05-16/11 and No. 05-16/12 dated 02/14/2024) without any competitive procedures, which is permitted under martial law, but creates grounds for abuse.
As established by a comprehensive examination, the prices for materials were set at inflated levels. The losses to the state under these two contracts alone amounted to:
- UAH 2,233,523.25 (excluding VAT) – under the contract with AKVI-BUD LLC.
- UAH 4,191,656.50 (excluding VAT) – under the contract with LLC "MELSITY".
Total: 6,425,179.75 hryvnias of stolen funds only for the first contracts.
The overpayment was for basic things: metal fence posts, anti-tank pyramids ("dragon's teeth"), even for lumber and bitumen primer. In fact, the funds allocated from the State Budget Reserve Fund for defense ended up in the pockets of affiliates.
Fictitious leadership and real beneficiaries
The investigation revealed that the formal heads of these firms are only front persons. The real management of construction and finances was carried out by S.O. Bilovol and M.V. Storkin. Moreover, a number of other contracting firms (LLC “Fundament-L”, LLC “ALLIANCE SOM”, etc.) are controlled by the same Bilovol, which is confirmed by the submission of reports from one IP address.
BEB searches in the offices of these companies and at the residences of their "managers" and accountants are aimed at collecting evidence against all participants in the scheme, including officials of the Melitopol Regional State Administration who signed the contracts.
Resonance and consequences
This case has gained resonance due to the direct and obvious logical link between the head of the OVA, Ivan Fedorov, and the contracting companies. The question of the extent to which he directly managed this scheme or profited from it is central to the investigation. The damage caused in the amount of 6.4 million UAH is only the tip of the iceberg for the first contracts. The real scale of the embezzlement in defense may be much greater.
Zaporizhzhia's "underground syndicate": How UAH 47 million was stolen during the construction of school shelters in collusion with a state-owned enterprise
Journalists found overpayments, and BEB proved a conspiracy: companies from the same group that builds trenches for Fedorov were inflating prices for concrete for schools.
In parallel with the construction of fortifications in Zaporizhia region, another large-scale corruption scheme unfolded, this time in the construction of anti-radiation shelters for schools. According to the investigation, the losses caused to the state exceed 47 million hryvnias. And here too, companies associated with the head of the OVA were involved.
Journalistic publicity: a technique that prevented lies from escaping
The case began with a series of publications by the "Zaporizhzhia Center for Investigations" in October-December 2024. Journalists analyzed the construction estimates for five underground schools ("Sich College", "Logos", Secondary School No. 88, Lyceum No. 107, "Elint").
The methodology was crystal clear: take the most expensive items in the estimate (from 50 thousand UAH) and compare them with the average market prices in open sources. The result was impressive: systematic overpricing of prices for the same materials at different sites.
Damage figures: 47 million at just five sites
The amount of overpayments detected at each individual facility is impressive:
- School No. 88: overpayment of 14 million UAH.
- "Sichovy Collegium": overpayment of 17 million UAH.
- Lyceum "Logos": overpayment of UAH 10.5 million.
- Lyceum No. 107: overpayment of 9.5 million UAH.
- Collegium "Elint": overpayment of UAH 9.4 million.
The total amount of overpayments discovered by journalists amounted to more than 60 million UAH, and the losses to the state are estimated at at least 47 million. The largest overpayments were for concrete mixtures (up to 8.5 million per facility), reinforcement (up to 4.4 million) and waterproofing (up to 2.8 million). In many estimates, "unverified" items with vague characteristics were found, which allowed the customer and the contractor to maneuver prices.
The scheme happened: how the "underground syndicate" worked
The statement of the NGO "Zaporizhzhia Center of Investigations" became the basis for the initiation of a criminal case by the Bureau of Economic Security of Ukraine. The investigation established the details of the scheme.
The customer was the state enterprise "Local Roads of Zaporizhzhia Region" (SE "MDZO"). It concluded contracts with a number of contractors. The key figures in the BEB case were the same companies that were building the fortifications: LLC "MELSITI", as well as LLC "Adonia Company" and LLC "Company Positive".
According to the BEB's findings, the mechanism was as follows:
- Overestimation in the estimate: The prices for materials in the documentation were deliberately indicated as higher than the market prices.
- Fictitious supply: Certificates of work performed were signed with false data on volumes or costs.
- Money laundering: The received budget funds were cashed out through a chain of controlled companies (such as LLC ALLIANCE SOM). A VAT credit scheme was also created to evade taxes.
Resonance and systematicity
This case gained resonance due to two key aspects:
- Scale: The sum of 47+ million UAH is funds stolen during the war for the safety of children.
- Systematic: The same group of individuals and related companies (such as LLC "MELSITY") appear simultaneously in two high-profile cases: the construction of fortifications (a direct interest of the head of the OVA) and the construction of school shelters. This indicates the creation of a powerful corruption syndicate that controls huge flows of budget funds in the region under the cover of senior officials.
The searches by the BEB and the criminal proceedings give hope that the perpetrators will be punished. However, the main question remains open: who is at the top of this scheme and will the personal responsibility of the regional leader be established?
