NACB Investigating Possible Corruption In Cabinet During Endorsement Of Gas Price Formula

Detectives of the National Anticorruption Bureau of Ukraine (NACB) investigate possible corruption of some officials of the Cabinet of Ministers during adoption of two resolutions of the government No.315 of April 27, 2016, and No.187 of March 22, 2017, setting the formula for calculating the natural gas price.

This is said in a ruling of the Solomiyanskyi District Court of Kyiv of March 29, 2018, Ukrainian News Agency reports.

According to the ruling, some officials of the Cabinet of Ministers acted in the interest of third persons by adopting the said government resolutions. The resolutions obliged the Naftogaz of Ukraine national joint stock company to purchase natural gas from the public joint stock company UkrGasVydobuvannya and the public joint stock company Chornomornaftogaz at the price of UAH 4,849 (less VAT) per 1,000 cubic meters.

The investigation believes the price was economically unfounded and not confirmed by actual expenses. This entailed grave consequences in the kind of high prices for utility services.

According to the court materials, Naftogaz and UkrGasVydobuvannya concluded two contracts regarding supplies of natural gas to households for a total sum of over UAH 97.9 billion.

The NACB has decided to check the movement of assets in accounts of UkrGasVydobuvannya since May 1, 2016 (the date from which Naftogaz of Ukraine is obliged to purchase natural gas from UkrGasVydobuvannya at the price of UAH 4,849 per 1,000 cubic meters).

As Ukrainian News Agency earlier reported, on August 17, 2017, the NACB searched the office of the National Commission for State Regulation of Energy and Public Utility Services.

According to the NACB press service, the search was held within investigations into a case upon abuse of office during electric energy pricing under the Rotterdam+ formula.