Gas Transmission System Operator gifted ballerina 1.5 billion

In late 2024, the Operator of the Gas Transmission System of Ukraine signed two major contracts worth 1.6 billion UAH with LLC "KB 'Teploenergoavtomatika'". Both projects concern construction at classified facilities, which raised a number of questions, particularly in light of last year's corruption scandal involving the company.

Gas turbine contract: no competition and inflated prices

In October 2024, the Operator of the GTS of Ukraine signed a contract with LLC "KB 'TEA'" for the construction of gas turbine units for electricity generation. The project cost 74.4 million UAH. The MAN MGT-6000 units are intended for the decentralisation of energy capacities and ensuring power supply in the event of blackouts. 

The location of the equipment installation is not disclosed, as it concerns critical infrastructure facilities. Notably, this contract was signed without a competition, which is permitted by law if the project is related to preparation for the heating season. 

However, the contract does not include detailed cost estimates, listing only prices for work stages without specifying the cost of materials and equipment.

Compressor station reconstruction: tender with restrictions

In December 2024, the GTS Operator signed another agreement with "KB 'TEA'" for 1.43 billion UAH. The project concerns the reconstruction of a compressor station, but information about its location is also not disclosed. 

Only two participants took part in the tender: the Ukrainian company "KB 'TEA'" and the Turkish construction company ONUR. Notably, the requirements for participants limited the ability of small contractors to submit bids, raising suspicions of tender opacity. 

One such condition was a mandatory annual turnover of at least 50% of the contract value, as well as the presence of contracts worth at least $7.5 million each.

Price issues: possible overpayments

According to expert Yuriy Nikolaev, editor of the "Our Money" project, the cost estimates specified in the contract raise concerns. Some of them are significantly inflated compared to market rates. For example, prices for anchor bolts and profiles exceed market rates by 20-30%. 

In his opinion, there is a risk of overpayments amounting to millions of hryvnias for these items. Moreover, the estimate lacks details on the cost of rare materials, such as large-diameter ball valves, which could also lead to unjustified expenses.

Links to corruption scandals and "Naftogaz"

The company "KB 'TEA'" had previously featured in a high-profile scandal related to contracting work for the State Enterprise "Kyiv Metro". Specifically, it was involved in inflating prices for cable products under a classified contract for the repair of the metro's "red line".

Notably, the company is owned by Tatiana Beletska, a ballerina and teacher, who is the mother-in-law of Kyrylo Krivets, a long-time business partner of Viktor Braginsky, the head of the Metro. Interestingly, Braginsky previously worked in structures of the State Concern "Naftogaz", as did his partner Krivets. The Operator of the GTS of Ukraine, to which "KB 'TEA'" now belongs, is part of the "Naftogaz" group.

Thus, new contracts for the construction and reconstruction of gas infrastructure facilities have once again drawn attention to potential corruption risks, given past connections and the opacity of tender procedures.