Detectives of the Economic Security Bureau of Ukraine under the operational support of the SSU are investigating a criminal scheme of manipulations at gas distribution enterprises.

During searches of 16 regional gas enterprises and offices of the Regional Gas Company Group the fact of illegal use of tariff funds provided for the purchase of gas to cover production and technical losses was documented. Such actions caused damage to the state in the amount of almost UAH 3.5 billion.

It was established that in previous years in order to implement the mentioned illegal mechanism, gas distribution companies illegally withdrew natural gas from the gas transportation system, systematically increasing the debt to the state company. In fact, natural gas was transferred to gas distribution companies in an amount that is several times lower than the prepaid amount. The money collected in this way for the services provided was transferred to controlled enterprises in the "shadow" circulation.

In the future the participants in the proceedings tried to compensate artificially created debts at the expense of budget funds.

In the course of an analytical study of the financial and economic relationships of companies in the supply chain conducted by the Department of Information Analysis and Risk Management the amount of probable overestimation of the VAT tax credit may amount to UAH 281 million. In addition analysts of the ESBU established that non-commodity transactions were carried out under the guise of gas purchases, financing of other types of operational activities of the Group of Companies was carried out (financial assistance, trading expenses, dividend payments to owners, etc.).

Detectives of the ESBU together with operatives of the SSU located the illegal equipment of regional gas distribution enterprises for misappropriation of natural gas belonging to the state.

In addition in close coordination with Naftogaz of Ukraine the management of gas distribution companies in two other regions has been returned to state representatives.

Pre-trial investigation in criminal proceedings initiated on the grounds of a criminal offense provided for in Part 5 of Art. 191 of the Criminal Code of Ukraine (appropriation, waste of property or taking possession of it by abuse of official position) and Part 3 of Art. 212 of the Criminal Code of Ukraine (tax evasion) is carried out by detectives of the Economic Security Bureau of Ukraine under the procedural guidance of the Prosecutor General's Office with the operational support of the Security Service of Ukraine.