Investigation of causing UAH 729.8 million gas embezzlement scheme completed

The Detectives of the National Anti-Corruption Bureau of Ukraine (NABU) under the procedural guidance of the Specialized Anti-Corruption Prosecutor’s Office (SAPO) completed the pre-trial investigation as of the facts of embezzlement of natural gas of National Joint-Stock Company (NJSC) Naftogaz of Ukraine, which exceeds UAH 729.8 million. On October 7, 2020, five suspects and the defense had been granted with access to criminal proceeding for review.

The investigation revealed that during 2013-2015 the Heads of LLs (owners of Novoyavorivska and Novorozdolska thermal power plants) concluded a number of agreements with Naftogaz NJSC of Ukraine on purchase of natural gas for production of heat energy for citizens. In order to reduce the cost of heat for this category of consumers, NJSC supplied gas at prices significantly lower than market prices.

As a result, the profit from the electricity generation of the plants exceeded 60%, while the Energy and Utilities the National Regulatory Commission Ukraine set the tariff with 3-5% profit. Thus, according to the NABU Detectives, due to this scheme the thermal power plants received abnormal profit.

According to examinations, in 2016-2017 the participants of the crime organized embezzlement of 151.8 million cubic meters of natural gas in favor of Energiya-Novyj Rozdil LLC and Energia-Novoyavorivsk LLC. As a result, UAH 729.8 million damages was caused to the Naftogaz NJSC.

The NABU Detectives started investigation as of the abovementioned facts in June 2018.

Among suspects there are:

• two Former Heads of Energiya-Novyj Rozdil LLC and Energia-Novoyavorivsk LLC (Part 5 Article 191, Part 3 Article 209, Part 2 Article 366 of Criminal Code of Ukraine);
• the Former Technical Director of Energiya-Novyj Rozdil LLC (Part 5 Article 191, Part 3 Article 209 of Criminal Code of Ukraine);
• the Former Financial Director of two LLCs — Energia-Novoyavorivsk and Energiya-Novyj Rozdil (Part 5 Article 191, Part 3 Article 209 of Criminal Code of Ukraine);
• scheme organizer, the Advisor of the Director of  Energiya LLC (Part 5 Article 191, Part 3 Article 209, Part 2 Article 366 of Criminal Code of Ukraine).

In August 2020, these 5 persons were given a notice of suspicion.

This is the second episode of a crime committed by these persons in the previous period: the case as of embezzlement of natural gas which exceeds UAH 1.4 billion  was sent to court in December 2019. Thus, the total amount of embezzlement in two episodes exceeds UAH 2.1 billion. 

Related publications : https://nabu.gov.ua/en/tags/naftogaz-ukraine

According to Article 62 of the Constitution of Ukraine a person is considered not-guilty in commission of crime and cannot be a subject to criminal punishment, until he or she is found guilty by the court.