Ex-Naftogaz of Ukraine CEO Suspected of Misappropriating Over UAH 229 mln

Ukraine's National Anti Corruption Bureau published the following annooncement on its site on Jan. 19

On Jan. 19, 2023, NABU and SAPO notified the former Naftogaz of Ukraine board chair of suspicion of misappropriating over UAH 229 mln in 2018. His actions fall under Part 5 Art. 191 of the Criminal Code of Ukraine.

As established, the Naftogaz CEO (2014-2021), in May 2018, illegally issued an order to reward the company's employees, under which he was paid almost UAфH 261 mln (equivalent to USD 10 mln) for extraordinary achievements. These involve a positive decision in the case regarding the contract for the purchase and sale of natural gas in 2009-2019.

This amount significantly exceeded the norm for such payments (UAH 37.48 mln). Moreover, for the same achievements, an ex-Naftogaz CEO was paid a bonus of UAH 12.49 mln in 2017.

In general, more than UAH 229.25 mln were illegally paid to the suspect in 2018 (the difference between the actually paid bonus and its maximum permissible amount).

During the investigation, NABU and SAPO faced obstacles from the former Naftogaz management, who sent documents regarding the payment of bonuses to foreign legal advisers. They, in turn, refused to provide them at NABU's request.

However, after receiving information about the return of these documents to the company in 2022, NABU detectives seized them. This helped give a proper legal assessment of the suspect's actions.

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