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Ukrainian Business Under Attack – Ukrainian Infrastructure Association Responds to Law Enforcement Actions Against One of the Key Companies in Recovery and Construction: Avtomagistral-Pivden

On October 4th, 2024, law enforcement conducted aggressive searches at the offices and homes of Avtomagistral-Pivden employees, as part of an investigation into alleged budgetary losses linked to public procurement and pricing of materials. These actions, conducted without judicial authorization, involved infringements on the rights of employees and their families, causing undue distress and undermining their dignity.

The Ukrainian Infrastructure Association is deeply alarmed by the recent actions taken by Ukrainian law enforcement agencies. We view these actions as an attack on a vital contributor to Ukraine’s recovery efforts, which risks harming both the business climate and the critical infrastructure projects that are essential for the country’s resilience.

While we fully support the rule of law and the need for transparency and accountability, we strongly condemn the methods employed during this investigation. Avtomagistral-Pivden has reported serious procedural violations, including searches conducted without judicial approval, and inappropriate treatment of their employees. Additionally, we are deeply concerned about the police’s stance regarding the pricing of goods and materials during contract implementation, which were determined following established procurement procedures.

Avtomagistral-Pivden is a cornerstone of Ukraine’s infrastructure sector, particularly during this challenging time of war. The company’s work on vital projects such as energy protection, military infrastructure, and water supply systems is crucial to the country’s resilience. Moreover, Avtomagistral-Pivden fulfills contracts funded by international partners, including the European Bank for Reconstruction and Development (EBRD) and USAID, demonstrating their commitment to quality and international standards. Any disruption to their operations poses a serious risk to ongoing international cooperation and development projects.

We call upon Ukrainian authorities to immediately cease any actions that could be perceived as an attack on legitimate business activities and ensure that investigations are conducted strictly in accordance with legal procedures. It is vital that the fundamental rights of businesses and their employees are respected to maintain confidence in Ukraine’s legal and business environment.

Ukraine’s reconstruction efforts depend heavily on the active participation of private enterprises. Actions that undermine their ability to deliver on critical infrastructure projects will inevitably delay essential development, harm Ukraine’s recovery process, and damage the confidence of international investors.

The Ukrainian Infrastructure Association reaffirms its commitment to supporting transparent and fair business practices. We urge the government to uphold legal certainty and apply the law impartially to ensure Ukraine continues to be seen as a reliable partner for international investment and development. A swift and fair resolution to this matter is critical not only for Avtomagistral-Pivden but for the future of Ukraine’s broader recovery and reconstruction efforts.

Press Contact: info(at)unite.org.ua

The Ukrainian Infrastructure Association UNITE is a public union founded in 2021, developing and implementing the best solutions for the development of Ukraine’s infrastructure. https://unite.org.ua  

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