Energy scandal in Ukraine. The theft of millions of hryvnias was detected

The State Anticorruption Bureau of Ukraine has uncovered a scandal with an estimated value exceeding UAH 700 million, implicating one of the country's major energy suppliers, United Energy LLC. The illicit activities revolved around the procurement and unauthorized distribution of electricity.

According to a released statement from the bureau, United Energy LLC, a prominent energy supplier in Ukraine, was involved in the controversy. In March 2022, the company was slated to acquire electricity worth over UAH 716 million from the state-owned PJSC NEC Ukrenergo. Notably, at that juncture, the private entity already harbored substantial financial arrears towards Ukrenergo. Astonishingly, this did not deter the management board from entering into another contract.

The statement revealed that a commercial bank acted as a payment guarantor during this transaction. Surprisingly, the decision to issue the guarantee was made by the president of the management board himself, contravening established procedures.

In light of these revelations, the prosecutor's office is set to press charges against four individuals implicated in the scandal.

As per the State Anti-Corruption Bureau of Ukraine, the company receiving the electricity proceeded to sell it to "real market participants." However, the ensuing funds were not remitted to a state-owned entity; instead, they were transferred to accounts held by a company registered outside the country.

The prosecutor's office will bring charges against four people

This discovery underscores the depth of the malfeasance within the energy sector, with a cascade effect reaching multiple levels of the involved companies' hierarchy. The breach of established procedures, financial irregularities, and the channeling of funds offshore paint a grim picture of corruption within the energy procurement and distribution framework.

The authorities are now faced with the task of unravelling the intricate web of financial transactions and bringing those responsible to justice. The implications of such a scandal extend beyond financial losses, as they erode public trust in the integrity of key sectors and the effectiveness of regulatory oversight. The forthcoming legal proceedings will shed light on the extent of complicity and highlight the measures needed to fortify the nation's energy sector against corruption.