Prosecutor's office exposes embezzlement scheme at Ukrenergo: UAH 447 mln in losses, 5 suspects served notices

The prosecutor’s office in Ukraine has exposed an embezzlement scheme targeting NPC Ukrenergo that operated during 2022-2024 and caused UAH 447 million in losses to the company, with five scheme participants served with notices of suspicion, Prosecutor General Ruslan Kravchenko said.

"The organizer is the founder and actual controller of private energy supply companies through which electricity was sold. The man brought four market participants into the scheme and created a network of affiliated companies. Through them, they supplied electricity to end consumers and systematically manipulated consumption forecasts," Kravchenko said on Telegram on Thursday.

According to the prosecutor general, scheme participants deliberately understated electricity needs, knowing that actual consumption would be significantly higher. In other words, they showed on paper that little electricity was needed while actually selling significantly more.

"As a result, a deficit arose. The difference between what was declared and what was actually consumed. This deficit was automatically covered by the state so that consumers would not be left without power," Kravchenko said. At the same time, scheme participants received full payment from consumers for the electricity supplied. However, instead of settling with the state, these funds were siphoned off through affiliated companies and sole traders, effectively misappropriating them.

"They did not pay off the debt to Ukrenergo but instead artificially accumulated it, drove companies into hopeless debt and initiated bankruptcy proceedings. The scheme would then repeat itself with new companies. Losses exceed UAH 447 million," the prosecutor general wrote.

All scheme participants were served with notices of suspicion under Part 5 of Article 191 of the Criminal Code of Ukraine. The organizer was additionally charged under Part 3 of Article 27 of the Criminal Code. The question of selecting preventive measures is being resolved. Law enforcement officers are currently checking additional episodes and possible similar losses for 2025-2026.

"The investigation is ongoing. We are establishing the full circle of those involved and checking other possible episodes of criminal activity for 2025-2026," Kravchenko added.