Ukrainian law enforcement agencies have uncovered a large-scale corruption scheme in the natural gas extraction sector. With the involvement of the Security Service of Ukraine, the Bureau of Economic Security, and the Office of the Prosecutor General, a mechanism operating within Ukrgazvydobuvannya has been neutralized, resulting in losses to the state amounting to over 295 million hryvnias.
This is reported by Finway
Fraud Mechanism in Gas Industry Procurement
According to the investigation, officials from Ukrgazvydobuvannya, along with associated entrepreneurs, participated in the implementation of the corruption scheme. They organized the supply of materials necessary for gas extraction through shell companies. Initially, these companies purchased reagents at market prices, after which the products were resold multiple times among firms. As a result of fictitious agreements, the cost of materials was artificially inflated by 2-3 times.
“Shell companies purchased the materials necessary for gas extraction at actual market prices. Then these goods were repeatedly ‘resold’ among firms. Fictitious agreements artificially inflated the price of reagents by 2-3 times. Ultimately, the products were sold to a state company through a tender at the maximum price.”
Investigation and Suspicions Against Case Participants
A forensic economic examination confirmed state losses of over 295 million hryvnias caused by this criminal scheme. Detectives from the Bureau of Economic Security have already notified two individuals of suspicion: a representative of the supplying company and an employee of one of the divisions of Ukrgazvydobuvannya. They are suspected of aiding in the appropriation and embezzlement of property on a particularly large scale or committing a crime as part of an organized group under Part 5 of Article 27, Part 5 of Article 191 of the Criminal Code of Ukraine. Currently, the issue of applying preventive measures to the suspects is being resolved.