Investigation in Kryvyi Rih: Suspicion of Inflated Costs for Water Supply and Car for Official

The enterprise "Avtohighway-South", which is a member of the National Association of Road Builders of Ukraine, has found itself at the centre of two criminal investigations. The first concerns the possible embezzlement of state funds during the construction of a main water supply line for Kryvyi Rih. The second involves verifying the circumstances under which a former official of the State Agency for the Recovery and Development of Infrastructure of Ukraine may have received an undue benefit in the form of a Volkswagen Touareg worth over 3.1 million UAH.

Investigation into the Water Supply Construction

The initiative to build the Ingulets – Southern Reservoir water supply line emerged after the destruction of the Kakhovka Hydropower Plant in June 2023. This project was intended to ensure stable water supply for settlements affected by the accident.

According to data from the National Police, in July 2024, representatives of the relevant service and the construction company signed two contracts. The amount of the main contract exceeded 5.3 billion UAH, while the additional one was 2 billion UAH. In total, the contractor received approximately 7.4 billion UAH from the state budget.

Investigators established that company representatives may have artificially inflated the cost of building materials by purchasing them through affiliated enterprises. For example, pipes with a market price of approximately 16,000 UAH per metre were resold to the main contractor for over 24,000 UAH. The cost of certain materials could exceed the market price by approximately 50%.

According to law enforcement, commercial proposals with inflated prices were used to justify such expenses, which were then entered into cost estimates and acts of completed work.

In June 2025, investigators notified five individuals of suspicion under Part 5 of Article 191 of the Criminal Code of Ukraine (appropriation of property in especially large amounts). Among the suspects, according to media reports, is Oleksandr Boyko, the owner of "Avtohighway-South".

Financial Losses and Journalists' Estimates

In a statement from the National Police dated 19 June 2025, it is noted that experts confirmed losses amounting to over 240 million UAH. Meanwhile, law enforcement officials assume that after the completion of additional expert examinations, the total amount of losses may reach several billion UAH.

Journalists from RBC-Ukraine, whose materials were cited by "Focus", reported a possible overestimation of construction costs by more than 3 billion UAH. The investigation mentioned the design of an additional pumping station worth over 287 million UAH, the necessity of which raised questions among experts. It was also noted that there may have been an overestimation of pipeline costs by 1.8 billion UAH, as well as additional expenses for transporting sand and slag.

It is worth noting that these journalistic estimates cannot be equated with the amount of losses officially confirmed by judicial expert examinations in the criminal proceedings.

Episode Involving the Volkswagen Touareg

A separate investigation by the NABU concerns the possible provision of an undue benefit to an official of the State Agency for the Recovery and Development of Infrastructure of Ukraine. Former Prosecutor of the Specialised Anti-Corruption Prosecutor's Office (SAP) Stanislav Bronovetskyi spoke about the details of this investigation.

According to him, the NABU was verifying the circumstances of the purchase of a 2024 Volkswagen Touareg worth 3,178,100 UAH. The version of the investigation is that officials of "Avtohighway-South" may have organised the purchase of this car for Andrii Ivko, who was then the First Deputy Head of the Recovery Agency.

Bronovetskyi outlined the sequence of events: on 7 June 2024, a company representative allegedly negotiated the cash purchase of the car, and on 13 June, it was formally purchased by the official's sister, Olena Vernydub. On 18 June, Ivko was dismissed from his position as First Deputy Head of the Recovery Agency. Three days later, the car was registered in his sister's name. According to the former prosecutor, Ivko himself may have used the car later.

Bronovetskyi also drew attention to the duration of the investigation and the lack of a procedural result at the time this information was made public. Meanwhile, the fact of the car's purchase by a relative of the official does not prove the provision of a bribe, and there are no court conclusions regarding this episode in verified sources.

Procedural Status of the Cases

Journalistic materials regarding the water supply mention criminal proceedings No. 12024000000000774 dated 19 April 2024, which was investigated by the Main Investigative Department of the National Police. UNIAN reported that the proceedings were opened on the signs of an offence provided for by Part 3 of Article 28 and Part 2 of Article 364 of the Criminal Code of Ukraine.

However, in the National Police statement from June 2025 regarding the suspicions against five individuals, a different qualification is noted – Part 5 of Article 191 of the Criminal Code of Ukraine. Without access to current procedural documents, it cannot be stated whether this refers to a single proceeding with changed qualification, consolidated materials, or separate episodes.

The number of the NABU criminal proceeding regarding the Volkswagen Touareg is not provided in verified publications. It was also not possible to independently confirm its current procedural status as of 1 November 2026.

Reaction of the Company and Association

Following the notification of suspicions in the water supply case, the National Association of Road Builders of Ukraine expressed support for "Avtohighway-South". Association President Mykola Berezovskyi, in a statement dated 23 June 2025, criticised the actions of law enforcement officials and expressed concern of the road construction business.

The contractor itself also denied the accusations and explained the specifics of pricing by the difficult conditions of construction financing. A company representative stated about significant state arrears for completed work and the need to attract own financing for the implementation of the project. According to him, material suppliers provided payment deferrals, taking on financial risks.

These explanations from the company represent its position regarding the circumstances of contract performance and do not negate the need to establish all circumstances within the framework of criminal proceedings.