State Service of Geology, Subsoil revokes 19 special permits in accordance with sanctions of NSDC
The State Service of Geology and Subsoil of Ukraine in accordance with the decision of the National Security and Defense Council (NSDC) introduced by the President of the country, revoked special permits for subsoil use (all - oil and gas areas) to 19 companies.
According to the service's website, its order NO. 228 of March 26 applies to Novo-Dykanska area (Geo Connect LLC), Popasniansko-Samarska (Adgein Macro LLC), Pivnichno-Pereschepynska (Global Geo Invest LLC), Vilshanska (Trans Set Geo LLC), Pivdenno-Svystunkovska (Eco Gas Alliance LLC), Pivdenno-Zinkivska (Epival Energy LLC), Birkovsko-Yukhnovska (Geo Post LLC), Flerovsko-Yuvileina (Yunolit Oil LLC), Runovschynska (Profi Naft LLC), Boyarsko-Chapaivska (Geo Target LLC), Druzhyninska (Nadra Pride LLC), Hulakivska (Best Geo Tech LLC), Zuivska (Geo Stance LLC), Butovsko-Myrhorodska (Nadra West Group LLC), Liutensko-Budyschanska (Geo Force Oil LLC), Pivnichno-Fedorivska (Best Oil Company LLC), Mayorovska (Nadraprostir LLC), Davydivsko-Leliukhovska (Geo Vertikal LLC) and Kliushnykivska (Info Geo Trend LLC).
"The attention of the National Security and Defense Council to the field of subsoil use is not accidental, because this industry is one of the key ones in the national economy and the leader in filling the state budget," head of State Service of Geology, Subsoil Roman Opimakh said.
As reported, NSDC Secretary Oleksiy Danilov announced the imposition of sanctions on 19 companies that are involved in the case of the Golden Derrick company associated with former Energy Minister Eduard Stavytsky (later renamed as East Europe Petroleum) and the seizure of their permits for subsoil use since 2020, the Prosecutor General's Office (PGO) has been unsuccessfully seeking in the courts.
Golden Derrick received these permits for oil and gas exploration and production in 2012-2013 out of competition, as a third of its capital belonged to the state-owned Nadra Ukrainy. However, as reported by the former MP Olha Belkova with reference to State Service of Geology and Subsoil, at the end of 2018 Nadra Ukrainy sold 33% in these 19 fields with a total area of 2,000 sq. km without auction for UAH 12 million. Nadra Ukrainy explained its actions by the fact that this share did not provide the state-owned company with a real opportunity to influence the company's economic activity and management decisions.
According to the database of court decisions, the State Bureau of Investigation initiated criminal proceedings on the application National Interest of Ukraine on embezzlement of state property in the period 2010-2019 by Nadra Ukrainy officials in especially large amounts by prior agreement with unidentified persons, consisting in illegal alienation of shares in East Europe Petroleum in favor of LLC Avant Trade Limited.
Then, in early October 2019, the Unified Register of Pretrial Investigations in this case included information that officials of State Service of Geology and Subsoil, Nadra Ukrainy and a number of commercial entities had seized state assets in the oil industry by abusing their official position.
In early May 2020, information was added to the register that officials of State State Service of Geology and Subsoil, Nadra Ukrainy and others had created a criminal organization and were taking part in it in order to commit serious and especially serious crimes in Ukraine, which consisted in the illegal seizure of state assets in the oil industry by unjustifiably obtaining special permits for subsoil use under control of legal entities.
However, first the Pechersky District Court of Kyiv and then the Kyiv Court of Appeal refused to arrest these special permits.
By Decree No 123/2021 of March 25, President of Ukraine Volodymyr Zelensky put into effect the decision of the National Security and Defense Council of March 19, 2021 On application of personal special economic and other restrictive measures (sanctions) against 19 legal entities.