NABU, SAPO expose UAH 716 million electricity scheme: four suspects

On Jan. 11, 2024, NABU and SAPO exposed a scheme involving the misappropriation of electricity from NPC Ukrenergo and the legalization of funds received from its sale. The incurred losses amount to over UAH 716 million. The organizer of the scheme, an ex-official of Ukrenergo, the chair of a bank's board and a director of a private company were notified of the suspicion.

According to the investigation, in March 2022, United Energy LLC, at that time one of Ukraine's largest traders, purchased electricity from Ukrenergo worth over UAH 716 million. Despite the company's existing debt to Ukrenergo, the head of the relevant department of Ukrenergo didn't halt the sale. Moreover, one of the commercial banks acted as a guarantor for the payment, while the decision to issue the guarantee was made unilaterally by the chair of the board, violating the established procedure.

Subsequently, the electricity was sold to real market participants, while the proceeds were funneled into the accounts of a foreign company controlled by the organizer of the scheme. Notably, this organizer is also a business partner of a key figure in NABU and SAPО's investigation into the misappropriation of funds from PrivatBank. Finally, when Ukrenergo asked the guaranteeing bank to settle the debt, they got a refusal.

The suspects' actions fall under:

• the organizer of the scheme - Part 5 Art. 191 and Part 3 Art. 209 of the Criminal Code of Ukraine;
• the head of Ukrenergo department - Part 2 Art. 364 of the Criminal Code of Ukraine;
• the chair of the bank's board - Part 2 Art. 364-1 of the Criminal Code of Ukraine;
• the director of a private company - Part 5 Art. 191 and Part 3 Art. 209 of the Criminal Code of Ukraine.

Thanks to the timely actions by NABU and SAPO, over UAH 700 million in the accounts of companies involved in the scheme were seized.

As part of international cooperation, funds in the accounts of companies controlled by the organizer of the scheme in two European countries were also frozen. Moreover, attempts to lift the freeze by interested parties were documented, involving the submission of forged letters purportedly from detectives and prosecutors to the relevant foreign law enforcement agencies.

Furthermore, to prevent substantial market debts to Ukrenergo, NABU has submitted proposals to the National Energy and Utilities Regulatory Commission (NEURC) for amendments to specific provisions of the Market Rules. This move has garnered support.