Ukrainian law enforcement agencies have revealed a significant corruption scheme involving former officials and affiliated entrepreneurs of the state gas company, Ukrgazvydobuvannya. The investigation indicates that these individuals misappropriated over 295 million hryvnias from the company.
According to the Security Service of Ukraine, the scheme was orchestrated by ex-officials of Ukrgazvydobuvannya and connected private business owners. They inflated the costs of necessary material purchases, allowing them to siphon off funds from the company.
Companies controlled by the accused acquired chemical additives and other products at market prices and then sold them back to Ukrgazvydobuvannya at prices two to three times higher. The profits were subsequently distributed among the scheme’s participants.
Currently, a private company director and a former official from Ukrgazvydobuvannya, who facilitated the tenders, have been charged under Article 191 of the Criminal Code of Ukraine for misappropriation and embezzlement through abuse of power. Authorities are now determining appropriate preventive measures while the pre-trial investigation continues. Law enforcement is taking comprehensive steps to hold all involved parties accountable.
This incident echoes previous corruption allegations in the gas sector, notably involving Roman Nasirov, who was suspected in 2017 of abusing his power to aid tax evasion for companies linked to former MP Oleksandr Onyshchenko. The state reportedly lost 2 billion hryvnias due to these actions.
Onyshchenko allegedly orchestrated a scheme to embezzle funds from Ukrgazvydobuvannya by having his companies sell gas at undervalued prices to intermediary firms, which then resold it at market rates. Prosecutors claimed this resulted in significant financial losses for the state.
The National Anti-Corruption Bureau (NABU) completed its investigation into Nasirov in March 2017, forwarding the case to the Shevchenkivsky District Court in Kyiv. Alongside him, former director of the State Fiscal Service’s debt recovery department, Volodymyr Novikov, also faced charges. The total losses were estimated at 740 million hryvnias, with allegations that Nasirov facilitated further embezzlement by Onyshchenko, who has denied any wrongdoing and remains abroad.
Ukrainian authorities have exposed a corruption scheme involving former officials of Ukrgazvydobuvannya, leading to the misappropriation of over 295 million hryvnias. This case adds to a history of corruption in the gas sector, including previous allegations against Roman Nasirov and Oleksandr Onyshchenko.