UAH 295 million embezzlement scheme at JSC Ukrgazvydobuvannya: ESBU notified two individuals of suspicion

 Detectives of the Main Detective Unit of the Economic Security Bureau of Ukraine have notified two participants in a scheme to misappropriate funds from JSC Ukrgazvydobuvannya of suspicion. The losses amount to UAH 295 million.

The investigation revealed that officials from a private company, in collaboration with those from a state-owned enterprise, established a mechanism to inflate product prices during public procurement.

To implement the scheme, they involved controlled enterprises that submitted coordinated commercial proposals to create the appearance of competition. In this way, the victory of a pre-selected company was ensured, while other 'participants' acted formally or with non-competitive bids.

Subsequently, products were purchased from manufacturers at market prices, but before being supplied to the state enterprise, they were processed through a chain of controlled companies to artificially increase the cost.

The resulting difference between the real and declared value was withdrawn in cash and distributed among the scheme's participants.

Within the framework of the scheme's implementation, 13 supply contracts were concluded. The overpayment amount exceeding the market value of the goods is UAH 295 million.

ESBU detectives notified two individuals—a representative of the supplier company and an employee of one of the divisions of JSC Ukrgazvydobuvannya—of suspicion under Part 5 of Article 27 and Part 5 of Article 191 of the Criminal Code of Ukraine (aiding and abetting in the misappropriation and embezzlement of property on an especially large scale or committed by an organized group).

The pretrial investigation is ongoing. ESBU continues to identify other involved persons and document all episodes of illegal activity.

Procedural guidance in the criminal proceedings is carried out by the Office of the General Prosecutor, while operational support is provided by the Security Service of Ukraine.

Note: according to Article 62 of the Constitution of Ukraine, a person is considered innocent of committing a crime and cannot be subjected to criminal punishment until their guilt is proven in a lawful manner and established by a court's verdict of conviction.