20.08.2024 Investigations

How Kyiv’s shopping malls were recognized as critical infrastructure

Recently, the news spread that a number of Kyiv shopping malls have begun to switch to imported electricity, which means that blackouts are no longer an obstacle for them.

The list of “independent” shopping and entertainment centers includes Gulliver and Ukraine’s largest Respublika Park. According to an official statement from one of the chains: “We have started buying imported electricity from four countries – Slovakia, Poland, Romania and Hungary. This decision was made in order to facilitate the operation of the Ukrainian energy system and ensure the full operation of the facility.”

Absolutely. The electricity import mechanism is an alternative for companies with a continuous production cycle and a constant need for electricity. According to Art. 6 of the Law of Ukraine “On Electricity”, blackouts are planned in advance and are carried out in accordance with the procedure established by the regulator. However, if a company buys electricity from abroad, it is not subject to these blackouts and receives it in full.

As a reminder, according to the current Resolution of the Cabinet of Ministers No. 1127 of October 27, 2023, enterprises can be provided with a stable supply of electricity provided that they import part of it, in particular, 80%. The rest is provided by the state power supply and diesel generators.

Can shopping malls import electricity?

Any company, regardless of size and industry, can implement this.

However, there are a few buts.

For example, the volume of imports. Today, the maximum permitted import of electricity from Europe is 1.7 GW or 40.8 GWh per day. This is where the pitfalls lie. After all, the allowed volume is limited by infrastructure (power supply lines). If someone takes on a share of imports, others receive less. The category of “others” includes hospitals, military production, hospitals, i.e. all critical infrastructure. So the interests of the mall are higher than the health of Ukrainians and defense?

But this is not the first time that the interests of the country and its people have been put second to profit. Thus, it is still surprising that VS Energy a company with a clear Russian trace, still controls the leading regional power distribution companies. We are talking about shares in Rivneoblenergo (93.2%); Khersonoblenergo (99.9%); Chernivtsioblenergo (96.8%); Zhytomyroblenergo (95.5%); and Kirovohradoblenergo (72.9%).

It should be reminded that the ultimate beneficiaries of VS Energy include brothers Arkadiy and Ihor Rotenberg, Oleg Deripaska, Yevgeny Giner and Ukrainian Mykhailo Spector.

In mid-May 2023, President of Ukraine Volodymyr Zelenskyy signed a decree on new sanctions packages that continue the course of isolating and blocking the Russian military industry. The sanctions lists include 493 legal entities and 208 individuals. Among them are persons associated with VS Energy. However, as we can see, this has not affected the company’s operations.

Nor did the existence of criminal proceedings. According to our materials, the Main Department of the National Police in Chernivtsi region registered information in the URPTI 12024260000000489 under Part 2 of Article 364 of the Criminal Code of Ukraine, the Main Department of the Security Service of Ukraine in Chernivtsi region – 22024260000000111 under Part 1 of Article 364 of the Criminal Code, and the Pechersk District Court of Kyiv ordered the authorized persons of the Prosecutor General’s Office to start investigating the circumstances (case No. 757/22889/24-k).

So when will the Russian footprint be finally eradicated from Ukraine, and especially from critical industries?

However, it is not only the Russian footprint that helps to steal and profit from the critical situation in Ukraine’s energy sector. Thus, Ukrhydroenergo entered into a number of contracts with risky counterparties for the construction of structures to protect hydroelectric power plants, restoration and repair of equipment. Moreover, in absolutely every case, the above was done in violation of the bidding procedure. Millions of dollars worth of contracts were signed with fictitious companies that did not perform the planned work but received funding instead.

One example is 4 agreements with Garant Energo LLC for the construction of anti-drone protection and other protective structures for the Kremenchuk HPP. The company, with a multifaceted owner specializing in construction, agricultural industry, etc., has received billions of budget funds.

We analyzed a number of procurements, each of which raised questions. Later, based on our materials, the Pecherskyi District Court ordered the State Bureau of Investigation (case No. 757/29512/24-k) and the Kyiv Bureau of Economic Investigation (No. 757/29513/24-k) to launch pre-trial investigations into the case.

We do not stop and continue to work.

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