A large-scale corruption scheme involving the misappropriation of lands belonging to Kyiv’s nature reserve fund has been successfully dismantled by Ukrainian law enforcement. The stolen land is valued at over 595 million UAH (approximately $15 million). The organization of this illicit operation has been traced back to former Member of Parliament Andriy Derkach, who is currently suspected of high treason and is hiding in the Russian Federation. The Security Service of Ukraine (SBU) reported the details of the investigation on Thursday.
According to the comprehensive investigation, during his parliamentary tenure before 2019, the suspect managed to illegally acquire 41.5 hectares of protected land within the capital region. Investigators noted that this staggering amount represents nearly 50% of the total area of this specific environmentally protected zone.
To execute this sophisticated embezzlement scheme, Derkach enlisted the help of high-ranking local officials. His primary accomplices were the then-head of the Obukhiv District Department of the State Land Committee and the head of the Obukhiv District State Administration. Abusing their administrative power, these officials played a crucial role in facilitating the land transfer.
The SBU revealed that the conspirators forged extensive land management documentation to bypass strict environmental protections. They subsequently entered false, manipulated data into the State Land Cadastre of Ukraine, effectively erasing the land’s protected status.
In a bid to launder the stolen assets and obscure their illicit origins, the group utilized a complex web of transactions. The large plots of land were repeatedly divided, merged, and resold. Ultimately, the properties were registered under the names of various proxies, including relatives and close acquaintances of Derkach and his accomplices.
Law enforcement authorities have issued notices of suspicion to all three primary figures involved. They are facing severe charges under the Criminal Code of Ukraine, including large-scale misappropriation and embezzlement of property through the abuse of official positions, as well as money laundering. One of the key organizers, the former head of the Obukhiv District State Administration, has already been detained by authorities.
As Derkach and the former head of the local State Land Committee are currently evading justice outside of Ukraine, they have been charged in absentia. Comprehensive measures are underway to bring them to justice.
This financial crime adds to a long list of allegations against Derkach. He is deeply implicated in national security threats, having allegedly been recruited by Russian military intelligence (GRU) back in 2016. According to earlier intelligence reports, Derkach received significant funding from top Russian handlers to establish private security companies across Ukraine, which were intended to act as a fifth column and assist Russian forces in their attempt to quickly capture the country in 2022.