Misappropriation of Odesa Airport: 5 suspects (SCHEME)

NABU and SAPO have exposed a criminal group that seized the assets of the Municipal Enterprise "International Airport Odesa" worth UAH 118 million and revenue from its activities amounting to over UAH 2.5 billion generated during 2012-2022.

As established, in 2011, two well-known Odesa businessmen organized a scheme to seize the property of the Municipal Enterprise "International Airport Odesa". To this end, they registered an LLC that was supposed to establish a joint venture with the Odesa City Council, with ownership distribution of 75% and 25%, respectively. The purpose was to gain ownership and further privatize the airport's property complex valued at around UAH 118 million. The then-mayor of the city secured the approval of the city council deputies to establish the company, presenting alleged plans of the co-founder to invest in the airport's development. Additionally, the official engaged in the forgery of documents, granting the controlled LLC the right to establish a joint venture with the city council bypassing the competitive process.

Importantly, the airport facilities obtained for joint use were not subject to privatization, as they had nationwide significance and fulfilled functions of border and customs control. Moreover, out of 2488 transferred assets, 535 were essential for airport operations, including aerodrome facilities essential for flight safety, and thus could not be alienated.

Furthermore, under the agreement, the "investors" committed to contribute a statutory capital of UAH 355 million, construct a new terminal and a runway. However, a major part of the deposited funds, due to the actions of scheme participants, became collateral and was blocked by a bank. The new terminal was built using a loan secured by the airport's property complex, and the construction of the runway failed to start.

As a result of the scheme's execution, its participants misappropriated the airport's assets totaling UAH 118 million and respective revenues of over UAH 2.5 billion.

Currently, there are five suspects:

• two Odesa businessmen co-organizers of the scheme – Article 191 Part 5, Article 27 Part 3 of the Criminal Code of Ukraine;
• the former mayor of Odesa – Article 191 Part 5, Article 366 Part 2 of the Criminal Code of Ukraine;
• the former acting deputy mayor of Odesa – Article 191 Part 5 of the Criminal Code of Ukraine;
• the director of the LLC – Article 191 Part 5 of the Criminal Code of Ukraine.

The investigation is ongoing.