HACC imposes preventive measure on ex-head of the State Property Fund Sennichenko

The HACC has chosen a custodial measure of restraint for the former Head of the State Property Fund of Ukraine. According to the investigation, he  headed a criminal group that seized more than UAH 500 million of funds from state-owned enterprises, including the Odesa Port Plant and the United Mining and Chemical Company, in 2019-2021. This was reported by UNN with reference to the SAPO. 

According to UNN's sources , this is the former head of the State Property Fund, Dmytro Sennichenko.  

On May 7, 2024, the HACC investigating judge upheld the position of the SAPO prosecutor and imposed a custodial measure of restraint on the former Head of the State Property Fund of Ukraine, who headed a criminal group that seized more than UAH 500 million of state-owned enterprises in 2019-2021, including the most powerful chemical enterprise in Ukraine, Odesa Port Plant JSC, and one of the world's largest producers of titanium raw materials, United Mining and Chemical Company JSC, and legalized proceeds of crime in the amount of more than UAH 10 billion

As noted, the suspect is currently on the international wanted list. After he is brought to the place of pre-trial investigation, the investigating judge will decide on the application of this measure of restraint.

Recall

Sennichenko was notified of suspicion in March last year.  According to the investigation, he created a criminal organization to establish control over the most important objects of the SPFU's management in the mining, processing, fuel and energy and other sectors of the state economy.

"The criminal plan was to appoint only controlled persons to the management bodies of state-owned enterprises who would ensure the sale of raw materials, provision of services, etc. and use of state resources exclusively in the interests of members of the criminal organization. To this end, the management of state-owned enterprises controlled by the Head of the SPFU entered into relevant agreements with companies controlled by criminals on terms that did not meet the interests of the state, but allowed criminals to enrich themselves illegally," the SAPO said.

 At the same time, he, together with other members of the criminal organization, ensured the identification of persons who were to control the activities of the relevant state-owned enterprises in the interests of the members of the criminal organization. Such persons, not being employees of state-owned enterprises, actually managed their economic activities, giving instructions to their managers to conclude relevant contracts, determine the winners of tender procedures and prices for the products of state-owned enterprises. Thus, so-called "back offices" were created at state-owned enterprises.

In particular, in order to achieve the illegal goals of this criminal organization, the then Head of the State Property Fund of Ukraine ensured the appointment of persons controlled by him to the management bodies of JSC OPP and the further commission by such persons, as part of a criminal organization, of a particularly serious criminal offense under Part 5 of Article 191 of the Criminal Code of Ukraine, namely the seizure of funds of JSC OPP by establishing contractual relations between OPP and a company controlled by a criminal organization on a non-competitive basis for the processing of tolling raw materials at reduced prices. As a result of such actions, for the period from May 2020 to October 2021, OPP JSC lost financial resources and incurred losses in the amount of UAH 390,970,234.42.

"In addition, the criminal organization seized the funds of another state-owned enterprise, JSC UMCC, by deliberately entering into four contracts with a non-resident company controlled by the criminal organization and ensuring the shipment of titanium raw materials at a reduced cost. These actions caused UMCC losses in the amount of UAH 118,337,425.81. Thus, the criminal organization seized funds worth more than UAH 0.5 billion," the SAPO said in a statement.