Borodyanka is often presented as a story of successful recovery after the Russian invasion. But behind the facade of beautiful reports lies a criminal case about the embezzlement of almost 17 million hryvnias that were supposed to go towards major repairs.
In early 2024, the Restoration Service concluded three contracts with the contractor LLC "BC "Elit" for a total of 66 million hryvnias. Under the terms of the contracts, the company received an advance payment of 16 million - however, as law enforcement officers found out, no real work was ever performed.
In February 2025, all agreements were terminated by mutual consent. No refunds were even requested. While the houses remained unrenovated, the advance money “traveled” between affiliated companies. Some of the amounts were simply transferred to cash through bank transactions, and the investigation is now trying to track where they disappeared to.
Instead of holding the guilty parties accountable, the Recovery Service re-announced tenders. The new winners were companies that had previously been involved in criminal investigations into poor-quality work and cost overruns. At least one of them worked as a subcontractor for the same company, BC Elite, which “absorbed” the advance payment and did nothing.
The situation in Borodyanka is a vivid example of how money allocated for the reconstruction of affected communities can disappear without a trace. Impunity and the lack of control over the spending of funds call into question not only the effectiveness of reconstruction, but also the very trust in state institutions.
