UAH 295M losses: Fraud scheme exposed in procurement for Ukrgasvydobuvannya

Ukrainian law enforcement has uncovered a scheme involving the embezzlement of state funds through procurement at Ukrgasvydobuvannya, causing losses to the state exceeding UAH 295 million.

Prosecutor General Ruslan Kravchenko announced this on Telegram, according to Ukrinform.

"Shell companies purchased materials required for gas extraction at real market prices. These goods were then repeatedly 'resold' between firms. Fictitious transactions artificially inflated the price of reagents by two to three times. Ultimately, the products were sold to the state company through a tender at the maximum price," Kravchenko said.

According to him, the manipulation involving intermediary companies caused losses to Ukrgasvydobuvannya exceeding UAH 295 million, as confirmed by a forensic economic examination.

The head of a private company and an official of the state-owned enterprise who directly organized the procurement tender have been notified of suspicion under Part 5 of Article 191 of the Criminal Code of Ukraine (misappropriation and embezzlement of property). A decision on pre-trial restraint measures is currently pending.

The prosecutor general added that the crime was uncovered through joint efforts of the Prosecutor General's Office, the Security Service of Ukraine, and the Bureau of Economic Security of Ukraine.

Photo: Ukrgasvydobuvannya