Five persons are suspected of involvement in UAH 729.8 million gas embezzlement scheme

On August 11, 2020, the Detectives of the National Anti-Corruption Bureau of Ukraine (NABU) under the procedural guidance of the Specialized Anti-Corruption Prosecutor`s Office (SAPO) gave notices of suspicion to five persons. They are suspected of embezzlement of natural gas of National Joint-Stock Company (NJSC) Naftogaz of Ukraine, which exceeds UAH 729.8 million. 

This is the second episode of a crime committed by these persons in the previous period: the case 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. 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).

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.

It should be reminded that in December 2019 a pre-trial investigation as of the facts of embezzlement of more than 300 million cubic meters of natural gas of Naftogaz NJSC was sent to court. The case is currently at the preliminary examination. Due the investigation, the entire property complexes Novoyavorivska and Novorozdolska thermal power plants were seized.

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