17.05.2025
Investigations
Money laundering
How Naftogaz and Ukrnafta became a feeding ground for oligarchs and corrupt officials
Ukraine is losing billions of hryvnias due to corruption schemes in the energy sector, and state-owned companies Naftogaz of Ukraine under Roman Chumak and Ukrnafta under Sergiy Koretsky have become instruments of enrichment for top managers, oligarchs and offshore structures. From the illegal sale of gas at low prices to the withdrawal of UAH 13.8 billion through fictitious transactions. Who is behind these schemes and why does the state remain silent when ordinary citizens pay for oligarchic deals?
Corruption in Naftogaz: 300 million cubic meters of gas for excessive profits of thermal power plants
In 2018, NABU detectives completed an investigation into a large-scale scheme to embezzle 300 million cubic meters of natural gas belonging to Naftogaz of Ukraine. A number of controlled enterprises entered into agreements with Naftogaz for the supply of gas for heat production for the population, but received it at tariffs significantly lower than market ones.
This allowed the CHP plants to make excessive profits of up to 60%, while the NEURC set the rate of return at 3-5%. According to the NABU, these excess profits are comparable to the losses of Naftogaz, which amount to billions of hryvnias. The key detail is that the scheme would not have been possible without the participation of Naftogaz’s management, which deliberately approved unprofitable contracts, legitimizing the theft of public resources.
Disappearance of 48 billion hryvnias from the budget
Another scandal involves payments from GTS Operator JSC. According to the Temporary Investigation Commission of the Verkhovna Rada, headed by Oleksiy Kucherenko, in 2020-2024, GTS Operator transferred UAH 48 billion – 30% of its revenue – to Naftogaz as compensation for the transit of Russian gas to the EU.
These funds were not recognized as income in Naftogaz’s financial statements, which allowed the company to avoid paying taxes and dividends to the state budget. The 2020 audit classified these amounts as “reimbursement of lost revenues,” although the GTS Operator was obliged to pay UAH 9.6 billion annually under the NEURC regulations. Interestingly, these payments were not mentioned during public discussions of tariff policy in 2019, which indicates that the decisions were not transparent.
Ukraine has violated its commitments to the IMF of November 8, 2021, which provided for the termination of such payments. However, they continued under the guise of “compensating for liquidity shortages”, although they were not related to gas transportation. The audit confirmed violations of tax and corporate law.
Sky-high bonuses: UAH 81 million for top managers
Naftogaz’s financial statements for 2024 are shocking: UAH 81 million was paid to five board members and six directors, which amounts to UAH 7.3 million per year (or UAH 613.3 thousand per month) per manager. In 2023, expenses amounted to UAH 77 million, and the increase in bonuses looks cynical amid the war and economic challenges.Supervisory board expenses in 2024 increased to UAH 33 million (from UAH 18 million in 2023), of which UAH 29 million was for services and UAH 4 million was for reimbursement of expenses.
By the way, Roman Chumak, who is currently the interim chairman of the Board of Naftogaz, earned UAH 15.3 million in 2023 and UAH 18.4 million in 2024.
In 2024, Naftogaz declared a profit of UAH 23.9 billion, compared to a loss of UAH 0.8 billion in 2023. However, do these results justify such expenses when the state needs resources for defense?
How Ukrnafta embezzled UAH 13.8 billion
PJSC Ukrnafta, in which Naftogaz owns 50%+1 share, also found itself at the center of corruption schemes. Under the control of Naftogaz, Ukrnafta became part of illegal transactions.
In particular, under Sergiy Koretsky’s leadership, Ukrnafta sold seized gas that had been in circulation for more than 10 years for 18,000 UAH per thousand cubic meters, while Naftogaz purchased gas for 24,000 UAH. The cost of such gas is minimal, but the proceeds from its sale end up in the pockets of people close to Koretsky, and the state budget loses billions.
In 2025, NABU and SAPO exposed a scheme to embezzle UAH 13.8 billion from Ukrnafta. In 2015, the company signed contracts for the sale of oil for UAH 10.7 billion with a number of LLCs that did not make full payment but received the products. The oil was refined at the Kremenchuk refinery and the oil products were sold through gas stations.
At the same time, Ukrnafta entered into 70 contracts for the purchase of petroleum products for UAH 3.06 billion with another company, making advance payments. However, the products were not delivered, and the funds were withdrawn to offshore accounts. The delivery dates were postponed until 2018, but the agreements were never fulfilled. This resulted in the loss of material assets and a currency outflow from Ukraine.
In addition, Ukrnafta buys pipes from a company affiliated with an influential oligarch at prices that are 1.5 times higher than last year. This indicates a corrupt conspiracy that provides undue benefit to individuals at the expense of public funds.
Another interesting issue is the supply of fuel for the Armed Forces, which should be subject to a zero VAT rate. However, Ukrnafta sells diesel fuel to the Ministry of Defense without taking this rate into account, which leads to excessive budget expenditures and overstated contracts.
The schemes at Naftogaz have a direct impact on the lives of every Ukrainian. Losses from unfavorable deals and concealment of income are borne by taxpayers. The high gas and heating tariffs set by the National Energy and Utilities Regulatory Commission are partly the result of these abuses. While top managers receive millions, ordinary citizens are forced to save on basic needs.
Energy poverty is becoming a reality for many Ukrainians, and the state-owned company that was supposed to work for the benefit of the people has turned into a source of enrichment for the elite. NJSC Naftogaz of Ukraine is not just a state-owned enterprise, but a strategic asset on which the country’s energy security depends.
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