Ex-presidential adviser Shylo avoided imprisonment in the case of embezzlement at Ukrzaliznytsia
The High Anti-Corruption Court on October 13 approved a plea agreement with former adviser to the Office of the President and senior SBU official Artem Shylo in the case of embezzlement of funds from Ukrzaliznytsia. The court sentenced him to eight years in prison, but released him from actual serving of the sentence with a three-year probation period.
This was reported by the Specialized Anti-Corruption Prosecutor's Office (SAP), Transparency International Ukraine, and the Anti-Corruption Action Center.
Shylo fully admitted guilt in organizing the embezzlement of funds from the state company and laundering property obtained by criminal means. According to the approved agreement, he also undertook to cooperate with the investigation and provide incriminating testimony regarding other SBU employees.
Additionally, the former official must inform law enforcement officers about another crime known to him that falls under the jurisdiction of NABU, and assist in its investigation.
Fine, compensation for damages, and confiscation of property
Under the terms of the agreement, Shylo must pay a fine of 204 million UAH. The court allowed the payment to be spread over one year – four payments of 51 million UAH each.
Separately, the convicted person undertook, within 12 months after the sentence becomes legally binding, to compensate Ukrzaliznytsia for damages in the amount of 60 million UAH and transfer 80 million UAH to the charity fund "Come Back Alive". The funds are intended to counter Russian reconnaissance and strike drones.
The court also ruled to apply special confiscation of Shylo's assets. In particular, three apartments in the elite residential complex "Novopecherski Lypky" in Kyiv are to be transferred to the state revenue:
- one apartment with an area of 183.5 square meters;
- two apartments with an area of 102.3 square meters each.
In addition to real estate, the special confiscation provides for the collection of 325.78 million UAH, which Shylo must pay within 18 months after the sentence becomes legally binding.
Thus, the total amount of the fine, compensation for damages, charitable contribution, and funds subject to special confiscation is about 670 million UAH. The cost of the three apartments is not included in this amount.
According to the SAP's report, earlier, within this case, at the initiative of the accused, 30 million UAH already received as bail were transferred to the needs of the Armed Forces.
Additionally, the court for three years deprived Shylo of the right to hold positions related to managerial and administrative-economic powers in military formations and law enforcement agencies.
As reported by Transparency International Ukraine, the court also lifted the arrest on the personal car "Mercedes-Benz" belonging to the former official.
The case of procurement for Ukrzaliznytsia
Artem Shylo previously worked as an adviser to the Office of the President and held senior positions in the Security Service of Ukraine. According to NABU and SAP, he organized the so-called back office, through which the participants of the scheme controlled Ukrzaliznytsia's procurement, ensured victories of affiliated companies in tenders, and supplied equipment at inflated prices.
One of the episodes concerned procurement of cable and wire products in 2021-2022. According to the investigation, enterprises connected to the participants of the scheme sold cables to the state company at prices exceeding market ones. Damages in this episode are estimated at over 140 million UAH.
The second episode concerned the supply of power transformers. The investigation established that the participants of the scheme organized procurement at prices inflated almost twice, and competitors with more favorable offers were excluded from participating in procedures. Ukrzaliznytsia's losses reached almost 100 million UAH.
In total, in two episodes, state company losses are about 240 million UAH.
Separately, law enforcement officers investigated the laundering of illegally obtained funds. According to NABU, Shylo spent over 173 million UAH on the purchase of elite real estate, which was registered to controlled persons.
In April 2024, law enforcement officers detained Shylo, and HACC set a measure of restraint in the form of detention with an alternative bail of 30 million UAH. He was subsequently released from the pre-trial detention center after depositing the funds.
In August 2026, NABU and SAP filed an indictment against Shylo and other members of the organized group to the court.
In late September, it became known that Shylo agreed to conclude a plea agreement. Materials regarding him were separated into a separate proceeding.
Earlier, similar agreements with the investigation in this case were concluded by SBU employee Oleksandr Kovaliuk and realtor Oleksandr Liskovatsky, who was accused of facilitating the laundering of illegally obtained property.
The verdict handed down on October 13 does not mean the termination of the investigation against all other suspects. In particular, co-organizer Kostiantyn Melnyk also expressed readiness to conclude an agreement, however, as of the moment of sentencing Shylo, it had not yet been approved.
The release of Shylo from actual imprisonment requires him to fulfill the obligations established by the court during a three-year probation period. Violation of the conditions of probation may be grounds for reviewing the decision to release him from serving the sentence.
Based on the reports: Specialized Anti-Corruption Prosecutor's Office, Transparency International Ukraine, platform "HACC Decided"