Law enforcement authorities have exposed a large-scale criminal enterprise and served notices of suspicion to five key figures accused of embezzling 100,000 metric tons of petroleum products worth over UAH 2.88 billion ($70 million) from state-controlled oil producer PJSC Ukrnafta. The pre-trial investigation, supported operationally by the Security Service of Ukraine (SSU), revealed that the misappropriated fuel accounted for nearly 20% of all petroleum products sold through Ukrnafta’s retail network during the scheme’s execution.
Charges have been filed under Part 5 of Article 191 (embezzlement on an exceptionally large scale) and Part 3 of Article 209 (money laundering) of the Criminal Code of Ukraine. Formal notices of suspicion were served to four key perpetrators:
High-Level Organizer: A key leader of an influential business group that historically exercised de facto control over Ukraine’s energy sector.
Mid-Level Coordinator: A shareholder in several entities controlled by the business group, responsible for managing operational execution and concealing illicit activity.
Corporate Management: The Chairman of the Board and the Deputy Chairman for Commercial Affairs of affiliated joint-stock companies.
Additionally, a written notice of suspicion was issued for a fifth suspect—a foreign national and former Vice President of PJSC Ukrnafta (where the state holds a controlling stake). Because the foreign executive is currently residing abroad, the legal documents were transmitted overseas via international legal assistance procedures.
According to investigators, the perpetrators executed the fraud through a multi-tiered distribution network. Ukrnafta initially transferred petroleum products to a controlled entity under commission agreements. The fuel was then funneled to other shell companies for wholesale and retail distribution across gas station networks. Proceeds from these sales were systematically siphoned off to bank accounts managed by the controlled companies, both in Ukraine and abroad.
To obscure the identity of the ultimate beneficial owners, the organizers routed funds through a complex web of offshore entities registered in Cyprus, Belize, Saint Kitts and Nevis, and the British Virgin Islands.
«The volume of petroleum products misappropriated by the perpetrators accounted for nearly 20% of the total fuel volume sold across Ukrnafta gas stations during the scheme’s operation.»
Law enforcement agencies are currently extending their investigation to determine whether similar embezzlement schemes were carried out during subsequent periods, including after the imposition of martial law in Ukraine. The pre-trial investigation remains ongoing under the operational support of the Security Service of Ukraine.