Serhiy Taranenko: Investigation into 93 million UAH procurement and award scandal

Serhiy Taranenko, who controls the Dnipro Switch Factory JSC, has found himself at the centre of two high-profile investigations. Law enforcement agencies are examining his involvement in the embezzlement of 93.2 million UAH during the supply of equipment to Ukrzaliznytsia, as well as the potential inflation of product costs for the state Port of Pivdennyi.

Political past and award

Taranenko is the owner and head of the factory, and also controls 42.2% of the VKP "TAKO" LLC. It was this company that supplied railway equipment manufactured by the Dnipro Switch Factory to the state port. Previously, the businessman officially worked as an assistant to People's Deputy Yaroslav Dubnevych.

In May 2019, Taranenko's name appeared in a document by then-President Petro Poroshenko, which provided for the award of the Order of Prince Yaroslav the Wise, 5th degree. The administration of the head of state then explained the appearance of the document as a "technical glitch", stating that an erroneous draft decree, part of which was the awarding of the businessman, had mistakenly ended up on the website.

Ukrzaliznytsia case: accusations and court proceedings

According to the National Anti-Corruption Bureau (NABU) and the Specialised Anti-Corruption Prosecutor's Office (SAP), Yaroslav Dubnevych organised the supply of equipment through intermediaries — the KRT Corporation and Argo LLC — although the railway had the opportunity to purchase it directly from Taranenko's factory. The investigation claims that officials tailored tender conditions to a specific manufacturer, while intermediary companies simulated competition.

In May 2026, the High Anti-Corruption Court (HACC) closed the case concerning the procurement of switch products for Ukrzaliznytsia in 2015–2017 due to procedural issues regarding the time limits for the pre-trial investigation and their extension. However, the SAP appealed this decision. According to data from the "Judicial Power of Ukraine" portal, the appellate hearing in case No. 991/878/22 is scheduled for 18 November 2026.

Investigation into Port of Pivdennyi procurement

Investigators from the Bureau of Economic Security (BES) are verifying the possible inflation of prices for switch, rail, and joint products for the State Enterprise "Pivdennyi Sea Trade Port". This concerns procurements from 2024–2025, in which VKP "TAKO" LLC was the winner.

In March, July, and September 2024, the port carried out three procurements with an expected total value of almost 21 million UAH excluding VAT. The sole participant in the tenders was "TAKO". The contracts were signed by the port head Oleksandr Oliinyk and the company's General Director Vyacheslav Satunovskyi.

According to investigation data, officials informed the supplier in advance about the requirements for the goods and the volumes of financing, while the tender documentation was drafted for Taranenko's factory's products, limiting competition. BES investigators compared prices with those for this manufacturer's products supplied to Poltava GZK, DTEK, and other enterprises, recording an inflation of 1.5 to 2 times. Total damages under the three contracts were estimated at 4.9 million UAH.

In March 2025, the port announced a new procurement worth over 6 million UAH including VAT. The Dnipro Switch Factory requested that the procurement be split into lots to participate in the tenders directly, but the port rejected this. "TAKO" was again the winner.

Investigators believe that Vyacheslav Satunovskyi agreed with the management of Budindustriya LLC and ZRS LLC to provide fictitious commercial proposals with inflated prices. This was intended to create the appearance of market value for the equipment. According to the investigation, the price of this contract was inflated by 2 million UAH.