Embezzlement of natural gas worth UAH 729.8 million: indictment sent to court

NABU has completed an investigation into the embezzlement of natural gas of state-owned Naftogaz of Ukraine NJSC worth more than UAH 729.8 million. 

The Specialized Anti-Corruption Prosecutor's Office has filed an indictment against five persons, namely:

• two ex-Directors of Enerhiia-Novyi Rozdil LLC and Enerhia-Novoiavorivsk LLC (Part 5 Article 191, Part 3 Article 209, Part 2 Article 366 of the Criminal Code of Ukraine);
• ex-Technical Director of Enerhiia-Novyi Rozdil LLC (Part 5 Article 191, Part 3 Article 209 of the Criminal Code of Ukraine);
• ex-Financial Director of Enerhiia-Novyi Rozdil LLC and Enerhia-Novoiavorivsk LLC (Part 5 Article 191, Part 3 Article 209 of the Criminal Code of Ukraine);
• scheme mastermind, an advisor to the Director of Enerhia LLC (Part 5 Article 191, Part 3 Article 209, Part 2 Article 366 of the Criminal Code of Ukraine).

As established, in 2016-2017, the directors of the mentioned companies concluded a number of agreements to purchase natural gas from Naftohaz of Ukraine NJSC for the heating needs of the population. To reduce the cost of heating for this category of consumers, Naftohaz supplied the CHP with gas at prices significantly lower than the market ones.

As a result, the profitability of electricity production by these CHPs exceeded 60% (compared to 3-5% set in the tariff by the National Commission for State Regulation of Energy and Public Utilities). The Detectives believe the above scheme brought CHPs super-profits while Naftohaz of Ukraine NJSC lost millions.

The expert examinations say that in 2016-2017 the participants in the crime misappropriated 151.8 million cubic meters of natural gas in favor of Enerhiia-Novyi Rozdil LLC and Enerhia-Novoiavorivsk LLC. As a result, Naftohaz of Ukraine NJSC suffered losses in the amount of UAH 729.8 million.

NABU has been investigating the above facts since June 2018.

In August 2020, the scheme participants were notified of suspicion.

In October 2020, the defense was granted access to the case files.

There is another gas embezzlement case involving the same participants and losses worth UAH 1.4 billion. It has been heard in court since December 2019. The natural gas embezzled in both episodes is worth more than UAH 2.1 billion.

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