Media: Ukrzaliznytsia officials may benefit from fuel shortage

Management of the State Rail Transport Administration, or Ukrzaliznytsia, has allegedly deliberately caused a problem with diesel fuel shortage at Ukrzaliznytsia, to enable a businessman Ihor Yeremeyev to take over fuel supplies, according to Ukrainian news service at censor.net.ua.

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Similar situations regarding fuel supplies already happened in the past, so Ukrzaliznytsia’s effort to block fuel supplies was entirely predictable. In this regard, no explanations of Ukrzaliznytsia head Oleksandr Zavhorodniy regarding the present situation stand up to criticism.

"Given the fact that the administration has its own powerful legal department, which is expected, if not to prevent such threats, then at least to respond to them effectively, the excuses by [the company’s] management are hard to believe," according to Censor.

It is reported that Ukrzaliznytsia management may be interested in tender failure.

"No one argues that Oleksandr Zavhorodniy is a henchman of minister Andriy Pyvovarskiy, who, prior to his appointment, had been working in Continuum Group of Ihor Yeremeyev. It is very likely that WOG may eventually regain status of monopoly fuel supplier to Ukrzaliznytsia.

It is also reported that the unsolved issue with procurement creates opportunities for enrichment of Ukrzaliznytsia officials. After all, Ukrzaliznytsia resorts to commodity loans in such circumstances.

A direct contract is signed with suppliers, which does not involve cash payments. The parties simply agree on return of the same amount of fuel within a given period. Such loans do not provide for holding tenders. In the absence of proper control over the quality and quantity of fuel under such "barter", millions can be easily embezzled, according to the report.

As earlier reported, on July 29, the press service of Ukrzaliznytsia announced a ruling of Kyiv's Administrative District Court dated July 24, prohibiting Ukrzaliznytsia to purchase diesel fuel from OKKO-Business Contract. Ukrzaliznytsia intends to appeal the ruling.

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