Stolen twice while guarding a power substation: how millions disappeared in the Mykolaiv region

In the Mykolaiv region, one of the key substations of the power system twice became the subject of criminal proceedings over possible misappropriation of funds that were supposed to be used to protect it from Russian strikes. This concerns millions of hryvnias from the budget and funds from international creditors, while residents of the region during attacks on energy infrastructure were left without electricity for long periods.

This is reported in an investigation by Nikcenter, whose journalists analyzed criminal case materials, court decisions and information on financing the protection of substations of NEC “Ukrenergo”.

The story of the “Prohresivka” substation showed a similar scenario twice. The customers, contractors and sources of funding differed, but in both cases it was about direct contracts and problems with controlling the use of funds.

In January 2024, the SBU inspected four substations in the Mykolaiv region. It turned out that first-tier protection works at “Prohresivka” were actually carried out by PE “Monolit” and employees of “Ukrenergo”, while almost 10 million UAH under a contract concluded in September 2023 was received by LLC “IKAD”.

In October 2024, a criminal case was opened on the fact of embezzlement and misappropriation of property on an especially large scale. And in April 2026, the Central District Court of Mykolaiv found the former director of SE “Agency of Local Roads of Mykolaiv Oblast” Ivan Yanchenko guilty of abuse of office and falsification of documents.

But less than a year after the first episode, a new case arose, this time for a much larger sum.

In November 2024, NEC “Ukrenergo” concluded a contract with LLC “Kryvorizke Promenergo” for 89.3 million UAH for the reconstruction of “Prohresivka” and physical protection of the autotransformer. Financing was carried out within the emergency network restoration project with funds from the European Bank for Reconstruction and Development. Under the terms of the contract, the contractor could receive an advance of up to 80% of the contract value if a bank guarantee was provided.

On 27 December 2024, “Ukrenergo” transferred an advance to the contractor. According to the investigation, within the next three days the funds were distributed in several payments. In particular, 13.6 million UAH were allocated as cash coverage for the bank guarantee, and another 30 million UAH to Kharkiv-based LLC “Bud Stroy Postach” as a prepayment under a subcontract. The works at the substation were ultimately not carried out. “Ukrenergo” repeatedly reported delays from the schedule, and the contractor’s reference to force majeure in spring 2025 was declared unfounded.

On 14 July 2026, the investigation informed the director of LLC “Kryvorizke Promenergo” of suspicion under Part 5 of Article 191 of the Criminal Code of Ukraine. On 23 July 2026, the Holosiivskyi District Court of Kyiv chose a preventive measure for him in the form of detention for 54 days, setting the alternative bail at 67.9 million UAH.

According to Nikcenter, the director of the company since 23 January 2024 is Eduard Kesil, the brother of the co-owner of LLC “Kryvorizke Promenergo” Oleksandr Kesil. Another co-owner is Taisiia Kudinova.

The company had previously received large state orders. In particular, in 2024 LLC “Kryvorizke Promenergo” received from the Sumy Regional Military Administration almost 640 million UAH for construction of fortifications. According to journalists from Bihus.Info, company employees complained about delayed wages, and some materials for the fortifications were purchased at prices higher than the market average.

At the same time, the company’s financial indicators before receiving large state contracts were much more modest. According to YouControl, the company’s largest revenue was in 2024 — 318 million UAH, and in 2025 — 73 million UAH.

A separate question concerns the bank guarantee. JSC “Bank Alliance” guaranteed the contract execution for an amount of about 68 million UAH, with LLC “Budservis Dnipro” acting as guarantor. According to YouControl, in 2024 the assets of that company amounted to only about 1.8 million UAH.

On 27 August 2025, JSC “Bank Alliance” paid “Ukrenergo” the full amount of the guarantee — 67,961,386.91 UAH. And on 1 October 2025 the bank filed for bankruptcy of LLC “Kryvorizke Promenergo”. On 26 March 2026 the company was declared bankrupt and a liquidation procedure was opened.

Journalists also drew attention to a broader problem with the protection of energy infrastructure. In 2023-2024 the works were financed as part of an experimental project to protect critical infrastructure, which allowed direct contracts to be concluded without tenders.

According to the Accounting Chamber, of the 35.9 billion UAH allocated for protective structures, only 29.97 billion UAH actually arrived, and only 18.71 billion UAH was used. As of the end of 2024, anti-missile protective structures were ready by less than 25%, and drone shelters by less than 75%.

From February 2025 the financing mechanism was changed by introducing “Comprehensive Resilience Plans for Regions and Individual Cities”. In 2026 new billion-hryvnia tranches were already being directed to these purposes.

Separately, “Ukrenergo” continues to attract international financing to protect its own substations. In June 2026 the EBRD announced the allocation of another €90 million loan to the company for the reconstruction of three 330 kV substations and the construction of a new substation.

At the same time, the situation with the protection of substations in southern Ukraine remains problematic. According to Nikcenter, in 2023-2025 “Ukrenergo” concluded 19 contracts for the reconstruction of 330 kV substations of the Southern Territorial Network Service, which includes the Mykolaiv region. The total cost of these contracts exceeds 1.3 billion UAH.

Of the 19 contracts, 13 remain active, i.e. unfinished. Nine of them were signed as early as 2023.

According to the journalists’ conclusion, the situation at “Prohresivka” demonstrates a systemic problem: funds for protecting critical energy infrastructure are allocated in large amounts, but some projects are delayed, and some contractors become subjects of criminal proceedings.

For the Mykolaiv region, which has repeatedly experienced massive power outages after Russian attacks, the issue of completing the protection of energy facilities remains particularly important.

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