Criminal Scheme Uncovered at Ukrgazvydobuvannia, State Losses Exceed 295 Million UAH – SBU

The Security Service of Ukraine (SBU), alongside the Bureau of Economic Security and the Office of the Prosecutor General, has revealed the details of a criminal scheme that has been operating within the natural gas extraction sector. According to information released by the SBU, this scheme has inflicted losses on the state amounting to over 295 million UAH.

In a statement published on their Telegram channel on Monday, the SBU indicated that comprehensive measures had been taken to neutralize the criminal mechanism functioning within the joint-stock company Ukrgazvydobuvannia. Investigative data suggests that the masterminds behind this operation were officials from Ukrgazvydobuvannia, along with affiliated entrepreneurs.

The scheme uncovered by law enforcement involved the embezzlement of funds allocated for procurement by the state company. This was achieved through the artificial inflation of prices for materials necessary for gas extraction. It has been established that private companies, controlled by the implicated individuals, purchased chemical additives and other products from manufacturers and official suppliers in Ukraine at market prices, only to resell them to Ukrgazvydobuvannia at prices inflated by two to three times.

The profits generated from such fraudulent activities were subsequently distributed among all participants in the criminal scheme. Conclusions from forensic economic examinations have confirmed that these actions led to losses for the state company exceeding 295 million UAH.

Currently, law enforcement agencies have already issued suspicions against the head and an official of Ukrgazvydobuvannia, who organized the procurement tender. They are suspected under Article 191 of the Criminal Code of Ukraine, which stipulates liability for embezzlement, misappropriation of property, or acquisition through abuse of office.

Discussions are ongoing regarding the selection of preventive measures for the suspects. The pre-trial investigation is continuing, and law enforcement is taking comprehensive steps to hold all participants in this criminal scheme accountable. The situation raises concerns as it highlights serious issues within the state procurement system and oversight of budget expenditures.