Despite criminal investigations: the suspected company is implementing the square project in Trostyanka

In Trostyanka, Sumy Oblast, the first stage of restoration of the area of the 40th Army, which suffered damage as a result of hostilities, has begun. A contract worth approximately 25 million hryvnias has been concluded with the company “Automagistral-Pivden,” which is already a defendant in criminal proceedings related to large-scale embezzlement of budget funds.

This company is one of the prominent participants in the state program “Great Construction,” and since 2016, the state has concluded contracts with it totaling more than 132 billion hryvnias. The owner of the company is businessman Oleksandr Boyko, who, together with four other individuals, was recently suspected in a case related to the embezzlement of 240 million hryvnias intended for the construction of a water pipeline in Kryvyi Rih following the explosion of the Kakhovka hydroelectric power station. It is known that the company overestimated the cost of materials, purchasing them through related companies by more than 40% of the market price.

Despite the criminal investigations, Avtomagistral-Pivden continues to receive new contracts. Among the latest are works to restore the infrastructure in Trostyanka, where 9.5 million hryvnias have already been spent on dismantling work carried out by another company.

By the end of 2025, the project plans to enhance the area, update the engineering networks, create memorial and recreational areas, and arrange reservoirs and fountains. The nearby railway station is also undergoing repair, for 117 million hryvnias.

On June 28, Prosecutor General Ruslan Kravchenko personally inspected the materials of the Avtomagistral-Pivden case. He confirmed the legality and validity of the suspicions and also initiated an inspection of all proceedings related to the reconstruction. According to him, offenses involving the use of budget funds cannot go unpunished.

Additionally, the company is attempting to conduct its investigations and establish contact with law enforcement agencies. However, the presence of a criminal case did not prevent Avtomagistral-Pivden from winning another state tender, which raises questions about the transparency of tender procedures and the effectiveness of control in public procurement.

Earlier in 2022, a conflict occurred in the Kyiv region between Vitruvia LLC and the Gostomel Military Administration. The dispute arose over a modular town project on a plot of land leased by the company. The court banned the implementation of this project, but the conflict persisted, and the Kyiv OVA assumed the role of mediator. The parties even agreed on a memorandum in which Vitruvia took on part of the financing for the construction.

Later, Vitruvia appealed to the security police, citing the fact that the head of the military administration had involved law enforcement officers in actions that exceeded their powers and was attempting to exert pressure on the company.

Against this background, Avtomagistral-Pivden has again become the subject of accusations, this time for illegally seizing a construction site in Gostomel under the pretext of creating a modular town for internally displaced persons. However, this land belongs to another company that planned to build a housing complex for those affected by the war. According to lawyer Viktor Medved, this plot was transferred to Vitruvia LLC for construction, within the framework of which some of the apartments were to be allocated to the residents of Gostomel.

Additionally, more than 30 cases are under investigation regarding the embezzlement of funds allocated for the construction of defense facilities, resulting in a total loss of 20.1 billion hryvnias. Some of these cases also concern Avtomagistral-Pivden. These are key routes, such as between Velikiye Novosilka, Kurakhove, and Pokrovsky, where serious problems arise with fortifications.

We would like to add that on June 9, the Infrastructure Restoration and Development Service of the Sumy Region signed an agreement with Avtomagistral-Pivden LLC for the first stage of reconstruction of the 40th Army Square in Trostiantsa, valued at 23 million hryvnias. Before this, 9.5 million hryvnias had already been spent on dismantling work by another contractor.