The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAPO) exposed a scheme of abuse exceeding UAH 200 million in natural gas production at the fields of JSC Ukrgazvydobuvannia (UGV).

“Currently, a current and former official of the state-owned enterprise is suspected,” the NABU reported on Telegram.

As explained in the department, in 2019-2020, UGV held a competition and entered into an agreement with the winning company to provide services to increase natural gas production at the company’s fields. According to the agreement, the contractor must carry out basic and increased fuel production, while the cost of basic production per cubic meter of gas should be three to four times lower than the cost of increased production, and the volume should be fixed.

“However, the officials of Ukrgazvydobuvannia illegally reduced the rate of basic gas production, which led to an increase in increased production, for which the company must pay at a significantly higher rate,” the NABU noted.

According to the findings of the department’s detectives, the company, therefore, illegally overpaid the contractor UAH 211 million during 2020-2023.

As reported, over 2023, the production of commercial gas from Ukrgazvydobuvannia amounted to 13.224 billion cubic meters, which is 679 million cubic meters more than in 2022.

NJSC Naftogaz Ukrainy owns 100% of the shares of Ukrgazvydobuvannia.