Ukrainian police have unveiled the stark, opulent reality behind the alleged embezzlement of state funds intended to fortify the nation’s energy infrastructure.
During raids conducted on November 9, 2026, investigators discovered that while critical power substations in the Kyiv region remained dangerously exposed to Russian drone strikes, the individuals implicated in the construction project were living in the lap of luxury.
The interior of the property, featured in photographs released by law enforcement, revealed a jarring contrast: a multi-level penthouse decorated with gilded finishes and marble columns. According to reporting by Gordonua.com, the residence featured a private indoor swimming pool, a Rolls-Royce, and, most unexpectedly, a live crocodile kept in a terrarium.
Activist and former advisor to the Minister of Defense, Serhii Sternenko, who first brought attention to the state of these defense structures, described the scene as the “Pshonka style”—a reference to the infamous, over-the-top aesthetic of former Prosecutor General Viktor Pshonka, who fled Ukraine in 2014.
“Instead of sarcophagi at the substations, the company that received the funds for this appeared to have ‘tsar-like’ interiors with gilding, marble columns in a multi-level penthouse, an indoor pool, a terrarium with a real (!) crocodile, and a Rolls-Royce,” Sternenko wrote on his social media channels.
The investigation centers on the alleged misappropriation of state funds allocated for building protective barriers around energy substations. On November 3, Sternenko had already publicly criticized the state of these defenses, noting that the companies contracted for the work lacked the necessary equipment and personnel.
He alleged that the former head of the Kyiv Regional Military Administration, Mykola Kalashnyk, had signed agreements worth over 0.5 billion UAH without holding competitive tenders. According to Gordonua.com, the companies involved had previously appeared in criminal proceedings and failed to deliver on their contractual obligations after receiving significant advance payments.
The investigation has zeroed in on the business ties of Vladyslav Sokolov, a Dnipro-based entrepreneur whose portrait was reportedly found on the premises during the search.
DSNews.ua reports that Sokolov, who previously served as commercial director of the “Metallurg” trading house and ran for the Dnipropetrovsk Regional Council in 2015 for the Petro Poroshenko Bloc “Solidarity,” is linked to the companies “Stal Plus” and “TD Tryzub.” These firms were responsible for supplying metal products to the contractors building the protective structures.
Authorities are now auditing 25 state contracts totaling 1.89 billion UAH. Investigators are probing an alleged inflation of material costs, with the preliminary difference in pricing estimated at approximately 20.8 million UAH.
As noted by DSNews.ua, the core of the controversy remains the operational vulnerability of the energy grid. Sternenko has pointedly questioned how companies without the requisite technical capacity or staff managed to secure such lucrative state financing in the first place.
“When the question arises next time as to how it happens that after the impact of a single Shahed, electricity can disappear in half of Kyiv and the region, here is the answer,” Sternenko stated regarding the lack of completed protective measures.
