Deputies Yuri and Ostap Doshchyk implicated in multi-million hryvnia embezzlement

On 2 April, officers of the National Anti-Corruption Bureau of Ukraine, together with the Specialised Prosecutor's Office, detained Artem Shilo, a former adviser to the Office of the President and ex-employee of the Security Service of Ukraine. He is suspected of creating a scheme to embezzle nearly 100 million hryvnia linked to procurement for Ukrzaliznytsia. However, the high-profile names involved are merely the tip of the iceberg in this case.

Figurants in the scheme: from businessmen to deputies
The investigation revealed the involvement of several private individuals and enterprises, including the well-known Lviv entrepreneurs Yuri and Ostap Doshchyk. These brothers, founders of the company "Gal-kat", are engaged in the production of cable and wire products and the construction business. In addition, Yuri Doshchyk is a deputy of the Lviv Regional Council from the Servant of the People party, while his brother Ostap represents European Solidarity on the Lviv City Council.

Their company, "Gal-kat", features in a number of criminal cases related to tax evasion and the use of fictitious transactions. In December 2022, a seizure of 5.2 million hryvnia was placed on the enterprise's accounts. The investigation established that the company's settlement accounts may have been used for illegal activities.

How is "Gal-kat" linked to tax evasion?
According to the investigation, in 2023 the company's turnover reached 3.15 billion hryvnia, yet it paid only 63 million hryvnia in VAT instead of the estimated 441 million. This was made possible through schemes involving fictitious suppliers, such as Kontes LTD and SK Vtormet, which formally purchased copper scrap but, according to investigators, were engaged in transit operations.

"Gal-kat" also made the list of high-risk companies, indicating suspicions of VAT laundering and fictitious transactions. As journalists claim, the enterprise's activities may have led to an underpayment of taxes amounting to approximately 380 million hryvnia.

Link to embezzlement at Ukrzaliznytsia
Aside from tax violations, the Doshchyk brothers' companies feature in cases concerning inflated prices for supplies to Ukrzaliznytsia. For example, through the affiliated firm OP Ukrkabel, where the Doshchyks were founders until 2022, cable supplies were organised at inflated prices. The damage inflicted on the railway in 2021–2022 is estimated at 117 million hryvnia.

Artem Shilo's role and influence
According to case materials, Artem Shilo, who is described as the "overseer" of Ukrzaliznytsia, may have directed these schemes. The investigation possesses recordings of telephone conversations in which representatives of the firm Eney — another figurant in the case — refer to Shilo as an "influential person".

Why do the Doshchyks remain afloat?
Despite numerous criminal cases, enterprises linked to the brothers continue to participate in state tenders. In 2023, "Gal-kat" signed a contract for the supply of wires to Lviv Elektrotans for 20 million hryvnia. As journalists note, the company faced no competition in this tender.