Ukrainian MP Labaziuk in Court: Accused of Offering Kickback to Deputy PM for Billion-Dollar Reconstruction Contracts

Serhiy Labaziuk Questioned in High Anti-Corruption Court

According to Главком: The High Anti-Corruption Court of Ukraine has continued its interrogation of Member of Parliament Serhiy Labaziuk, who stands accused of offering an illegal benefit to the Deputy Prime Minister for the Restoration of Ukraine. The charges allege that Labaziuk attempted to secure reconstruction contracts worth over 1 billion hryvnias in exchange for a percentage of their value. His defense team is currently seeking to have the evidence presented against him ruled inadmissible.

Case Details

According to the case file, in August 2023, Serhiy Labaziuk approached an official at the Ministry for Restoration with a request to award contracts for rebuilding infrastructure projects, valued at over 1 billion hryvnias, to his company. In return, he promised a reward amounting to 3–5% of the value of each contract.

The first installment of this bribe, totaling $150,000 USD, was documented by law enforcement, with the illicit funds delivered to a supermarket parking lot. The negotiations and transfer of money were conducted under the control of the National Anti-Corruption Bureau as part of a special investigative operation, involving officials Mustafa Nayyem and Oleksandr Kubrakov. The meeting between the director of the company AT Yu ar Di, Denys Nazimov, and Mustafa Nayyem was initiated by Oleksandr Kubrakov, while Labaziuk coordinated the trip details with Nazimov.

Furthermore, Labaziuk proposed placing an accountant chosen by the officials within the enterprise, which would have allowed them to take 50% of the net profit. In August–September 2023, a meeting took place with the Director of the National Anti-Corruption Bureau, Semen Kryvonos. Separately, the High Anti-Corruption Court granted a request for Serhiy Labaziuk to travel temporarily to Europe to participate in negotiations concerning agricultural policy and quotas between the EU and Ukraine. Labaziuk chairs a parliamentary subcommittee on agrarian policy and is part of a five-MP delegation.

On November 21, 2023, the National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor's Office formally notified Serhiy Labaziuk of the suspicion against him. The suspicion is based on Part 4 of Article 369 of the Criminal Code of Ukraine, concerning the offering of an illegal benefit to a public official holding a position of particular responsibility. Serhiy Labaziuk is an MP from the 'For the Future' parliamentary group and has close ties to the private enterprise 'Agrarian Company 2004,' which leases agricultural land belonging to the family of officials from the Khmelnytskyi region.

“I did not believe in this system,” Serhiy Labaziuk stated in his address to the court.

The criminal proceedings are currently classified, which restricts public access to detailed information about the case.

This case underscores the critical challenge of corruption in Ukraine, particularly as the country manages vast sums for post-war reconstruction. It raises significant questions about the transparency of state procurement and the involvement of lawmakers in such processes, which can deeply affect public trust in government institutions. The outcome of this trial is being closely watched as a test of Ukraine's judicial resolve against high-level corruption.