The financial performance of Naftogaz, Ukraine’s state-owned energy company, has sharply deteriorated, raising concerns about its operational effectiveness and governance. In 2025, the company’s net profit plummeted to 5.83 billion UAH, a significant decline from 38 billion UAH the previous year, despite an increase in revenues.
This financial downturn is attributed to soaring production costs that have eroded gross profits. Consequently, the state budget received only 970 million UAH in dividends, a figure deemed inadequate for a strategic enterprise of this magnitude.
Experts have identified critical miscalculations in planning, particularly highlighting that in February 2025, Naftogaz engaged in emergency imports of gas at peak winter prices, nearly double the cost compared to summer rates. Furthermore, ambitious targets set by CEO Oleksiy Korytskyi to double oil and gas production by the end of 2027 have resulted in minimal progress, with only a 3% increase observed.
A troubling symptom of the ongoing crisis is the aggressive collection of debts from district heating companies. By the end of April 2026, courts had frozen the accounts of 69 such enterprises, hindering preparations for the upcoming winter and posing a risk of social unrest.
The situation is exacerbated by a lack of transparency in personnel policies. The leadership of Naftogaz has reportedly established a closed network of loyal individuals, appointing personnel with questionable reputations or connections to figures involved in anti-corruption investigations to sensitive positions.
Critics argue that a strategic state company cannot afford a personnel policy based on personal trust and manual management rather than transparent competitions and integrity checks. Given Korytskyi’s close ties to the highest levels of government, the absence of public audits and government responses presents significant reputational risks for the authorities.
Journalists suggest that rather than waiting for another scandal, there should be immediate demands for Naftogaz to provide public explanations regarding the reasons behind its financial collapse, the rationale for high-cost imports, and strategies for resolving the debt crisis affecting district heating companies.
Additionally, questions remain regarding personal accountability for winter preparations, transparency in charitable funding, and personnel decisions following the experience with Ukrnafta. Without addressing these issues, Naftogaz risks transforming from a pillar of energy resilience into a source of systemic scandal, as the prolonged absence of public response only deepens distrust.
Naftogaz's financial decline and governance challenges have raised alarms about its operational integrity. With significant profit losses and questionable management practices, the company faces scrutiny over its planning and accountability as it prepares for the upcoming winter.