Yuriy Momot: criminal multi-moves with state funds

The media are chanting that $40 billion is embezzled annually from the state budget in Ukraine. The purpose of such statements is to show the public that the government needs to be changed and a new one appointed, capable of finally rooting out corruption in the country, which has entangled all spheres of government management at all levels.

No matter what reforms are implemented in the country, there will always be an "activist" with extensive corruption experience, ready to rewire any innovative program to serve his own interests. For every "activist", there is an influential patron and a "strategic group" ready to regroup and redistribute under new financial flows for any occasion, under any state project.

Alternatively, if it is impossible to swiftly change the government and involve top officials and law enforcement in pursuing justice in Ukraine, it should be insisted that they acknowledge the results of corrupt offenses. At the same time, the names of criminal corrupt officials should be even more actively promoted. One such individual will be discussed in our essay.

Meet Yuriy Momot — a graduate of the Ryazan Higher Airborne Command School, a Master of the National Academy for Public Administration under the President of Ukraine, a fan of expensive Lexus cars and Vacheron Constantin watches (the price of the manufacturer’s watch ranges from 500,000 to 7 million hryvnias).

He is a candidate for the Verkhovna Rada in the 8th convocation from the "Public Movement of Ukraine" party, a candidate for the Petrovske village council in Vyshhorod district of Kyiv region in the first elections of local council deputies and village, settlement, and city heads on October 25, 2020, from the political party "Opposition Platform — For Life" (No. 4 in the list), a former advisor to the Deputy Minister of Defence of Ukraine Ihor Pavlovskyi. He is also the head of numerous private businesses with diverse activities, yet operating under a single concept: illegal enrichment through schemes related to budgetary funds.

Over many years of his management activities, Yuriy Momot has been involved in various corruption schemes, organizational scandals, and has become a figure in multiple criminal cases. Momot is one of the vivid representatives of the Ukrainian middle-tier political elite and has vast experience in implementing corruption schemes and maneuvers.

In 2020, the management of "Ukrzaliznytsia" appointed Yuriy Momot to the position of acting head of "Zbut Energy Ltd." The appointment was approved by the supervisory board of JSC "Ukrzaliznytsia". What happened next, read on.

Ukrzaliznytsia’s schemes, its derivative companies, and the result — investigations by NABU and SAPO

In late September of the current year, the Ukrainian government reported another "revolutionary decision" related to the implementation of a simplified procedure for purchasing electricity for the needs of "Ukrzaliznytsia". This was done through mutually beneficial bilateral agreements between the national carrier and NNEGC "Energoatom". As a result of the decision in late September, during an electricity auction on the Ukrainian Energy Exchange, the first contract was signed for the purchase of over 4.9 million MWh of electricity with a total value of 6.554 billion hryvnias. The contract until 2022 was signed between NNEGC "Energoatom" and "Ukrzaliznytsia’s" trader company "Enerho Zbut Trans". This company was established in 2018 specifically to provide Ukrzaliznytsia with electricity and is managed manually by "Zbut Energy Ltd." Based on the Cabinet of Ministers decision made on February 3, 2021, 100% of the share capital of "Enerho Zbut Trans" was transferred from JSC "Ukrzaliznytsia" to "Zbut Energy Ltd.".

As noted in the official release from "Ukrzaliznytsia": "The national carrier received a stable electricity price amid a sharp increase in energy resource prices worldwide, and the generating company — a reliable counterparty with significant consumption volumes — ’Enerho Zbut Trans’."

According to official sources, due to the activities of Yuriy Momot, the head and sole signatory of "Zbut Energy Ltd.", the company became one of the subjects of a high-profile investigation by NABU and SAPO initiated regarding the facts of possible embezzlement of JSC "Ukrzaliznytsia’s" funds during the period from 2019-2020 in the amount of 1.9 billion hryvnias.

"Defence schemes" with a criminal overtone

As we mentioned earlier, seasoned corrupt officials in various state bodies have patrons and "operative groups" ready to work together for the common goal—illegal enrichment. Yuriy Momot is no exception. At one time, in 2014, he created "Kolo Druziv (Circle of Friends) Ltd.", founded by the charity organization "Charitable Fund of Veterans and Participants of the Anti-Terrorist Operation". Through the schemes of "Kolo Druziv Ltd.", Momot robbed Ukrainian soldiers for a long time, misappropriating funds allocated for the recovery of ATO participants until he faced a criminal case.

Thanks to the fact that Momot’s charitable fund served as an advisory body at the Ministry of Defence, he managed to secure the position of Advisor to the Deputy Minister of Defence — Ihor Pavlovskyi. As is well known, Lieutenant-General I.V. Pavlovskyi was detained by NABU and SAPO detectives on October 11, 2017. He was suspected of involvement in a corruption scheme involving the embezzlement of state funds amounting to 149 million hryvnias during the procurement of fuel for the needs of the Ministry of Defence of Ukraine. Additionally, I.V. Pavlovskyi is involved in another defence scandal, in which budget funds also "disappeared" during procurements.

Considering the number of affiliated and "controlled" legal entities and the real absence of other "professional skills" of advisor Pavlovskyi, Yuriy P. Momot, it is quite likely that the "network of legal entities" was used for the development and subsequent withdrawal of budget funds through the Cypriot company Stilcros Services Limited (registered on 24.02.2017), whose activities, according to Cypriot registers, were actually nonexistent, or "Captek Corporation L. P." (founder of LLC "Eko-Tech" Momot), which despite the "termination of activities" status, has not yet been "removed from the register," and therefore has the right to own bank accounts both in the country of registration (Great Britain) and in the territories of origin of the founders (in this case, the Republic of Panama).

Yuriy Momot and the Predator Piranha

Since October 2019, "Piranha-Tech Ltd" has been operating in Ukraine, mainly engaged in the production of electronic components. Besides Yuriy Momot, the founders of this enterprise are citizens of Israel: Guy Flaks, citizenship — Israel, Holon, Khardorf Khanhalim st., b. 14; Vyacheslav Bad, citizenship — Israel, Holon; Oren Flaks, citizenship — Israel, Holon, Dgania st., b. 10/14, and Mr. Oleksandr Ruzhynskyi, who today is both a co-founder and the director of this structure.

On March 24, 2021, "Piranha-Tech Ltd" received a batch of products from AIRFENCE SOLUTIONS LTD (country Israel, registration number 515419950). The product description in the customs declaration is "OTHER MACHINES AND DEVICES: ANTENNA AMPLIFIERS". According to the official website of AIRFENCE SOLUTIONS LTD, indicated in the Bloomberg analytics resource (https://www.apolloshield.com/), the company specializes in producing and supplying equipment to combat small aircraft (drones). The company has several contracts with the Israeli Defence Forces and is a supplier of compact electronic warfare systems.

In Ukraine, there are only two directions for using "anti-drone" equipment: military and security. Considering the growing popularity of unmanned aerial vehicles as a means of military action in Donbas, the most likely "beneficiary" of AIRFENCE SOLUTIONS LTD technologies, and therefore the customer of "Piranha-Tech Ltd", could be the Ministry of Defence of Ukraine. Unfortunately, the defence order still contains more secrets than public information, leaving us only to speculate.

The co-founder of "Piranha-Tech Ltd" — Oren Flaks (Oren Flaks) is a co-founder of "Kavit Electronics" LLC (EDRPOU code 41935992) and serves as the vice-president of KAVIT ELECTRONIC INDUSTRIES (94) LTD, which specializes in the production of communication encryption tools, so-called "jammers", and other equipment to ensure stable troop management according to NATO and allies’ standards (data from the official presentation letter).

The combination of technologies produced or supplied by legal entities associated with Oren Flaks and other Israeli citizens can be used for the needs of the Ministry of Defence of Ukraine, including in combination with Turkish unmanned aircraft "Bayraktar TB-2", where the drone is the "sword" and the Israeli technology is the "shield". Most likely, Yuriy P. Momot "introduced" foreigners to the Ministry of Defence while serving as an advisor to the deputy minister during President Poroshenko’s time and may now continue to support them.

It is more than likely that being dismissed from the official position at the Ministry of Defence does not equate to the constant "cessation of relations" with the leadership of the state structure. Especially if something like Yuriy "silkworm" is not easily thrown away. Perhaps it’s time to set his wings on fire?

Author: Oleksandr Sosnovskyi