According to a recommendation letter from the analysts of the Economic Security Bureau of Ukraine officials of the municipal enterprise that initiated the procurement decided to reject the procedure and refuse to allocate funds under the contract.

The aforementioned Kyiv utility company planned to purchase transportation equipment for the subway for the total amount of UAH 11.2 million.

Employees of the ESBU based on the results of informational and analytical activities to prevent and counter the embezzlement of budget funds, using a risk-oriented approach, identified risky operations related to procurement with budget funds. In particular it was determined that the winner of the procurement was a business entity whose founder and beneficial owner is a citizen of the russian federation.

The money received by the russian company could have been transferred in the form of dividends or otherwise to the entities of the russian federation and used to finance the armed aggression against Ukraine.

Taking into account the information about the revealed prerequisites for causing damage to the economic security of the state ESBU sent a letter of recommendation to the administrator of budget funds. In order to prevent the wastage of funds analysts of the ESBU suggested reviewing the expediency of concluding a corresponding supply contract.

The embezzlement of budget funds in the amount of UAH 11.2 million was prejudicial.

Also, since the beginning of the year analysts of the ESBU have already anticipated the illegal reimbursement of value added tax in the amount of more than UAH 460 million.

We will remind that on October 12, 2022, the Cabinet of Ministers decided to ban public procurement from companies related to the russian federation, the republic of belarus and residents of these countries.

This is provided for in Clause 2 of the Resolution of the Cabinet of Ministers of Ukraine dated 12.10.2022 No. 1178 "On approval of the specifics of public procurement of goods, works and services for customers provided for by the Law of Ukraine "On public procurement" for the period of the legal regime of martial law in Ukraine and within 90 days from the day of its termination or cancellation" it is established that customers are prohibited from making public purchases of goods, works and services in:

citizens of the russian federation/republic of belarus (except for those residing in the territory of Ukraine on legal grounds); legal entities created and registered in accordance with the legislation of the russian federation/republic of belarus;

legal entities created and registered in accordance with the legislation of Ukraine the ultimate beneficial owner, member or participant (shareholder) having a share in the authorized capital of 10 percent or more which is the russian federation/republic of belarus, a citizen of the russian federation/republic of belarus (except those , residing on the territory of Ukraine on legal grounds) or legal entities created and registered in accordance with the legislation of the russian federation/republic of belarus;

customers are prohibited from making public purchases of goods originating from the russian federation/republic of belarus with the exception of goods necessary for the repair and maintenance of goods purchased before the entry into force of this resolution.