Court arrests ex-Ukrenergo head Kudritsky, offers UAH 13.7 mln bail as alternative

MOSCOW. Oct 30 (Interfax) - A judge of Kiev's Pechersky District Court has placed former Ukrenergo head Vladimir Kudritsky, suspected of defrauding, under arrest through December 26, offering UAH 13.7 million bail as an alternative, Ukrainian media said.

Kudritsky said at the hearing he signed two contracts after a procurement procedure, as he was supposed to do ex officio, and that was "a standard, routine process."

"The prosecution referred to nothing but the fact of signing the contracts. [...] Securing advance payments by a bank guarantee is a completely standard practice for Ukrenergo. [...]. In fact, I am accused of Ukrenergo collecting a bank guarantee from an unscrupulous contractor," Kudritsky said.

The prosecution asked the court to place Kudritsky under arrest with UAH 13.7 million bail as an alternative. The defense called the suspicion unfounded.

The State Bureau of Investigation said the official conspired with a private company during tenders for renovation of the external fence of substations of the southern and western energy systems in 2018.

The bureau said he was serving as Ukrenergo deputy director for investments at the time.

"The sides concluded two contracts totaling over UAH 68 million. After that, the state-run enterprise made an advance payment of over UAH 13.7 million to the client. The money was embezzled," the bureau said.

It did not name the suspects, yet, this is known to be the case of former Ukrenergo head Kudritsky and Lvov businessmen Igor Grinkevich.

Sources in law enforcement agencies told Ukrainian media earlier that bureau officers had detained Kudritsky in the Lvov region and prepared to charge him with major fraud.

The sources said it was the case of businessman Grinkevich and the possible embezzlement of state company funds during tenders for renovation of energy system elements in 2018.

The Pechersky District Court said the bail could be paid either by Kudritsky or by other parties. Kudritsky told reporters in the courtroom that the court's arrest warrant was politically motivated.