The SSU jointly with the ESBU exposed a large-scale scheme of embezzling natural gas from Ukraine’s gas transportation system.

Sanctioned oligarch Dmytro Firtash and top management of the companies under his control are involved in the scheme. Among them are heads of the Regional Gas Company (RGC), which de facto manages 20 city and oblast gas companies (70% of all gas distribution networks in Ukraine).

According to the forensic economic examination, in 2021 alone, the scheme caused losses to the state of over UAH 4.2 bln (USD 114 mln.). The total amount of damage over 2016-2022 is preliminary estimated at UAH 18 bln (USD 481 mln).

According to the investigation, officials of Firtash’s ‘oblast gas companies’ embezzled over 70% of the funds intended for purchase of natural gas. This means, in fact, they stole the money of ordinary Ukrainians who paid utility bills.

Within the scheme, Firtash-controlled oblast gas companies were ‘buying’ fuel from a company controlled by him as well. However, they actually received not more than 30% of the paid-for volume of gas.

The deficit created by this fraud was covered by state-owned natural gas: oblast gas companies simply took the ‘shortfall’ from Ukrainian gas transportation system.

At the same time, the fraudsters hardly paid the state for the gas, citing ‘lack of funds’. According to available data, Firtash’s oblast gas companies paid an average of 30% of the cost to the Ukrainian gas transportation system state-owned operator for the taken fuel.

Later, the fraudsters moved the money to shadows through a network of commercial entities controlled by the oligarch. Year after year, the losses to the state increased.

As part of criminal proceedings, the law enforcement agencies conducted searches in the offices and homes of organizers of the criminal scheme.

Based on the evidence collected, Firtash, two executives of RGC LLC, the head of YE ENERGY LLC and five heads of regional gas companies have been notified of suspicion under Articles 27.3, 191.5; 27.3, 209.3 of the CCU (misappropriation, embezzlement or seizure of property through abuse of office committed on a particularly large scale by an organized group, laundering of proceeds of crime).

Five of them were notified of suspicion in absentia as they are fugitives from justice abroad. The decision to put the suspects on international wanted list is pending.

The SSU carried out the operational and investigative activities jointly with the Economic Security Bureau of Ukraine under the procedural supervision of the Prosecutor General’s Office.