The Security Service of Ukraine (SBU) has uncovered abuse of office by officials of public joint-stock company Ukrtransnafta when they signed deals on storing pipeline crude oil.
The press service of SBU reported on Friday that in April 2014 the top managers of public joint-stock company Ukrtransnafta, the only founder and participant of which is the state as represented by national joint-stock company Naftogaz Ukrainy, signed several agreements with commercial firms on free-of-charge storage of crude oil taken from pipelines in their reservoirs. The agreements were signed for one year with the right to prolong them under the same conditions.
Ukrtransnafta’s managers signed supplementary agreements to the existing agreements and cut the term of free-of-charge storage to 90 days. After the expiration of this free-of-charge period officials signed new agreements on the payment basis without holding the required tenders in violation of Ukrainian law.
“In 2014, the cost of storing oil in commercial reservoirs varied from Hr 1.78 to Hr 3.20 per tonne of oil, and in 2015 the price grew to Hr 6.20. Under the agreements signed Ukrtransnafta illegally paid Hr 476.437 million to private businessmen. Thus, the state faced a loss of almost Hr 500 million,” SBU said.
The chief investigation department of SBU opened criminal proceedings under part 2 of Article 364 of the Criminal Code of Ukraine. An investigation is underway.
