12:57 27.08.2015

Financial inspectorate says Ukrinterenergo committed infringements over electricity purchases in Russia

3 min read
Financial inspectorate says Ukrinterenergo committed infringements over electricity purchases in Russia

The State Financial Inspectorate has checked the contract of state enterprise Ukrinterenergo with Russia's Inter RAO UES on purchases of electricity and has said that infringements have been revealed.

"The State Financial Inspectorate has handed the materials of the check to the chief department of the Interior Ministry in Kyiv to assess the lawfulness of carrying out financial and economic operations by Ukrinterenergo during the signing and implementation of contracts on imports of electricity from Russia and sale of electricity to the temporarily occupied territory of Crimea and Sevastopol city, to define signs of crime," the inspectorate said on Wednesday.

On August 14, the Energy and Coal Industry Ministry said that the State Financial Inspectorate of Ukraine, after an examination of the financial and economic operations of Ukrinterenergo state enterprise, did not find infringements during import and export transactions on electricity. The use of funds by Ukrinterenergo in the implementation of a contract to import electricity from Russia and its sale to the temporarily occupied territory of Crimea was checked.

However, the inspectorate then said that Ukrinterenergo included the fact of the supply of electricity to territory temporarily uncontrolled by Ukraine, which is not in line with Ukrainian law.

"In addition, electricity that under the contract was sent to the territory of Ukraine in April 2015 is under customs control for over 90 days, which is not in line with Ukrainian law," the inspectorate said.

The inspectorate also referrers to the internal investigation carried out by the National Agency for Civil Service at the Energy and Coal Industry Ministry, according to the conclusions of which Ukrinterenergo signed a contract with a company created to carry out operations on the temporarily occupied territory of Crimea under the Russian law on the annexation of Crimea, which Ukraine does not recognize.

"The facts of amending the text of the contract after its signing without supplementary agreements have signs of fake documents," the inspectorate said.

The inspectorate said that the period of Ukrinterenergo's operation from January 1, 2014 through May 31, 2015 was checked to execute the order of the Cabinet of Ministers, which received the results of the check and proposals.

As reported, Ukrinterenergo and Inter RAO UES in late December 2014 signed an agreement to export electricity from Russia to Ukraine. The one-year contract took effect on December 30, 2014 and foresees supplies in the volume of up to 1.5 gigawatts of electricity.

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