The Security Service of Ukraine, the Economic Security Bureau, and the Office of the Prosecutor General have uncovered an illegal scheme in the natural gas production sector.

As a result of the operation, the agencies have neutralised a criminal scheme at JSC Ukrgazvydobuvannya, which caused losses to the state amounting to over UAH 295 million (USD 6.7 mln).

According to the investigation, the organisers are former officials of JSC Ukrgazvydobuvannya as well as entrepreneurs affiliated with them.

The scheme involved embezzling funds allocated to the state-owned company’s procurement. This was achieved by artificially inflating the cost of materials necessary for gas production.

It was established that private companies controlled by the suspects purchased chemical additives and other products from manufacturers and official suppliers in Ukraine at market prices, and then sold them to JSC Ukrgazvydobuvannya at prices inflated by 2 or 3 times. The profits from these schemes were later distributed among the participants.

The forensic economic analysis confirmed that these actions caused losses to the state-owned company totalling over UAH 295 million.

The investigators have notified the head of the private company and a former official of JSC Ukrgazvydobuvannya, who organized the procurement tender, of suspicion under Article 191 of the CCU (misappropriation, embezzlement, or acquisition of property through abuse of official position).

The decision on a measure of restraint is pending.

The pre-trial investigation is ongoing. Efforts are underway to bring all participants in the scheme to justice.