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26
August
2021

Govt coordinates transfer of seized property of Novy Rozdil, Novoyavorivsk CHPPs to Naftogaz

KYIV. Aug 26 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine has agreed to transfer the seized property of Energia- Novoyavorivsk LLC and Energia-Novy Rozdil LLC (Novy Rozdil and Novoyavorivsk CHPPs) in Lviv region to Naftogaz Teplo LLC (100% subsidiary of NJSC Naftogaz Ukrainy).

According to government decree No. 972 dated August 30, 2021, published on the government portal, the transfer of seized property from the Asset Recovery and Management Agency (ARMA) is necessary to prevent the risk of interrupting the operation of Novy Rozdil and Novoyavorivsk CHPPs.

"The decision of the Cabinet of Ministers was made within the framework of a special procedure for selecting managers for strategic and socially important assets, which is used in special cases and enables the most efficient state-owned companies to legally establish management of critical infrastructure facilities in the shortest possible time," the ARMA said.

According to ARMA Head Dmytro Zhoravovych, the government decree solves two key tasks. "Firstly, this is an important precondition for the successful passage of the heating season in Novoyavorivsk and Novy Rozdil. Secondly, a practically tested mechanism that guarantees the participation of the state while maintaining and ensuring the functioning of strategic assets, in particular, such as Motor Sich and Donentskoblgaz, will finally appear," he said.

As reported, investigators established that the enterprises-owners of Novy Rozdil and Novoyavorivsk CHPPs during 2013-2015 concluded a number of agreements on the purchase of natural gas from NJSC Naftogaz Ukrainy for the production of heat energy to households. To reduce the cost of heat for this category of consumers, NJSC supplied gas to the CHPPs at prices significantly lower than market prices.

As a result of the implementation of this corruption scheme, the profitability of electricity production by these CHPPs exceeded 60% (compared with 3-5% laid down in the tariff by the National Energy and Utilities Regulatory Commission of Ukraine (NEURC), and NJSC Naftogaz Ukrainy suffered losses totaling more than UAH 1.4 billion.

In January 2018, the National Anti-Corruption Bureau of Ukraine announced the arrest of four officials of three companies in Lviv: Energia-Novy Rozdil, Energia-Novoyavorivsk and Energia on suspicion of seizing more than 300 million cubic meters of gas Naftogaz Ukrainy in the amount of over UAH 1.4 billion. These persons were notified that will be prosecuted on suspicion of embezzlement of state property on an especially large scale and other crimes.

The ultimate beneficiaries of the companies until December 2019 were ex-MPs from Yaroslav and Bohdan Dubnevych, now their sons Yuriy and Pavlo Dubnevych.