Key facts
- Ukraine's state-owned Danube Shipping Company (UDP) is facing allegations of severe mismanagement and corruption.
- The chairman of UDP's supervisory board sent a letter to Ukraine's parliament detailing a significant decline in the company's activity and market share.
- The chairman cited decades of corruption and resistance to cleanup efforts as reasons for the company's struggles.
- An internal investigation has been launched into a supervisory board member for alleged corruption risks.
- UDP's market share has collapsed from 18% in 2020 to nearly 4% in 2024, despite growth in the strategic Izmail port.
One of Ukraine's largest state-owned shipping companies, the Ukrainian Danube Shipping Company (UDP), is reportedly facing severe governance failures, mismanagement, and corruption risks, according to leaked internal documents.
Benoit Pleska, the chairman of UDP's supervisory board, sent a letter to Ukraine's parliament in early May detailing a sharp decline in the company's activity and market share since 2020. He attributed these issues to "corruption that has plagued the company's assets for decades" and noted significant opposition to the board's cleanup efforts. Pleska highlighted that while the state-owned Izmail port saw freight volume growth of 314% from 2020 to 2024, UDP's own freight volumes increased by only 2.1%, causing its market share to plummet from 18% to nearly 4% in the same period. UDP recorded losses exceeding $7 million in 2025.
Pleska's letter called for a parliamentary investigation into alleged illegal activities and decisions potentially contrary to the state's strategic interests. He described "huge resistance" to the board's attempts at reform, including independent audits and asset inventories, which he characterized as "malicious obstruction" and an "informational awareness campaign" to discredit him.
In response to Pleska's concerns, Ukraine's parliament, through its transportation and infrastructure committee, has acknowledged the situation as a matter of "significant current concern" requiring review. Separately, an internal investigation was launched by UDP into Taras Boichuk, a state-appointed supervisory board member, for alleged "impermissible" behavior and interference in operational matters, though the timing and scope of this probe have raised questions.
UDP, headquartered in southwestern Ukraine, plays a strategic role in transporting cargo along the Danube River, a crucial export corridor for Ukrainian grain and iron ore, particularly since Russia's blockade of Black Sea ports. The company's declining performance and the allegations underscore broader issues of governance and corruption within Ukraine's nearly 3,000 state-owned enterprises.