NABU, SAPO reveal UAH 211 million gas scheme: two suspects

On 11 March 2024, NABU and SAPO exposed a scheme that caused the loss of over UAH 200 million during the conclusion and execution of a natural gas production enhancement contract between the state-owned Ukrgazvydobuvannia JSC and a private foreign company.

As established, in 2019-2020, Ukrgazvydobuvannia held a tender and entered into a contract with the winning company, which undertook to enhance natural gas production at the JSC's fields. Under the contract terms, the company was to carry out basic and enhanced production of the gas. The cost of basic production gas was 3–4 times lower than that of enhanced production. Besides, the basic production volume was to be fixed. 

However, the officials of Ukrgazvydobuvannia amended the tender documentation and reduced the basic production volume by 750 million cubic meters over 15 years of the potential contract. Furthermore, a condition was added to the contract, according to which the calculation of monthly baseline production during the contract period was to be based on the company's production volumes in 2020, which Ukrgazvydobuvannia officials prohibited to enhance.

These unlawful actions led to an unjustified and artificial growth in the share of enhanced production gas, for which Ukrgazvydobuvannia had to pay a significantly higher price. During the period from October 2020 (when the gas fields were transferred to the contractor's management) to November 2023, Ukrgazvydobuvannia incurred losses amounting to UAH 211 million.

For the "successful" implementation of the project, the responsible official at Ukrgasvydobuvannya received a bonus double the amount of his monthly salary. After leaving the territory of Ukraine due the start of russia's full-scale invasion, he was employed as a business development manager at the company that won the tender.

He and one of the company's current officials have been charged under Part 2 Art. 364 of the Criminal Code of Ukraine.