Top managers of the Ukrainian association of scrap metals and recycling resources has accused PJSC Ukrzaliznytsia of arranging the conditions of tenders to sell scrap metal accumulated railways via the electronic system with the right of first offer in the interests of Interpipe Pipe and Wheel Company (Dnipro).

The letters were sent on April 14, 2017 to Ukraine's Cabinet of Ministers, Economic Development and Trade Ministry, Infrastructure Ministry, Ukrzaliznytsia, Prosecutor General's Office and National Anti-Corruption Bureau of Ukraine (NABU).

According to the letters, PJSC Ukrzaliznytsia organized two tenders to sell 46,000 tonnes of scrap metal on April 25, 2017 using a corrupt scheme via its Center for Provision of Production.

The companies that are not metal companies cannot take part in the tender.

"An attempt to violate Ukrainian law to remove rivals from participating in the auction and unlawfully cut the price of scrap metal and cause losses to Ukrzaliznytsia and the state has been made. Moreover, Ukrzaliznytsia has two possible options for the contract that differ in advance payment conditions. 50% of the advance payment is foreseen for those metal companies which are suppliers of products to Ukrzaliznytsia. 100% of advance payment is foreseen for other possible bidders. All other possible bidders have worse conditions," the association said.

The association urges to investigate into the corrupt scheme and punish the guilty persons.