The SSU has exposed large-scale schemes of misappropriating UAH 40 billion (USD 988 mln) by the former management of PJSC Ukrnafta and PJSC Ukrtatnafta. The investigation established that, apart from misappropriation, the companies had been engaged in tax evasion and money laundering.

PJSC Ukrnafta is the largest oil producer in Ukraine, while PJSC Ukrtatnafta is the largest oil refinery in the country.

Currently, 10 episodes of criminal activity are being documented within the criminal proceedings. These include diversion of large batches of petroleum products to affiliated companies, tax evasion, creation of bad debts of the oil refinery and oil production plants, which led to depreciation and reduction of their assets’ value.

According to the investigation, such criminal activity was carried out in the interests of actual owners and beneficiaries of the companies.

As part of the investigation, the SSU, together with the Bureau of Economic Security, carried out a series of searches. They were conducted at the homes of actual owners and top management of the financial and industrial group and at the addresses of supposed storage of oil products in several regions of Ukraine.

Based on the results of the investigative activities, the PJSC Ukrtatnafta’s top management were served notices of suspicion of committing criminal offences.

In November 2022, the SSU took steps to prevent destabilization of the largest oil refinery and oil production companies, as well as to ensure their transfer to state ownership in working condition.

This was done after a meeting of the Supreme Commander-in-Chief’s Staff, following which the National Securities and Stock Market Commission decided to expropriate shares issued by Ukrnafta and Ukrtatnafta into state ownership.

The SSU and the Bureau of Economic Security were checking information on multimillion-dollar evasion from paying the mandatory excise duty for 2022 by the company’s management.