Odessa authorities purchased sand for road sprinkling at exorbitant prices from a company with ties to Russia.

by Editor • 20.11.2015 • 0 Comments

On November 16, following a tender, Odessa municipal enterprise "City Roads" entered into an agreement with Mykhailo Ivanovych Starushkevich, the payroll company, for the purchase of sand. The contract amounted to 1,72 million hryvnias, according to the State Procurement Bulletin.

By the end of this year, 7,000 tons of sand will be delivered under the contract for winter road surfacing. The price per ton is 245 hryvnias, double the market price. According to open sources, sand can be purchased in Odesa starting at 120 hryvnias per ton, while the Zhytomyr City Council managed to buy it in October for 90 hryvnias per ton—another 50% cheaper.

Interestingly, Mikhail Starushkevich owns Yuzhnye Fondovye Tekhnologii LLC, whose name coincides with the name of Alexander Zhukov's Russian investment group Rost. Starushkevich previously founded a number of construction, manufacturing, and financial companies.

It's worth noting that he won tenders for sand supplies to Odessa utility companies worth a total of 3,12 million hryvnias. The only competitor in this tender was Skvo LLC, which has been "run" by the daughter of the Odessa mayor since November 2. Gennady Trukhanov Ekaterina.

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