08.07.2024 Ecology

How Russian oligarchs seized gas and oil in Kharkiv region

Kharkiv region is one of the leading hydrocarbon production regions in Ukraine. As the infographic shows, almost two dozen state-owned and private companies are currently engaged in hydrocarbon production in this part of the country. In addition, there is also illegal extraction, which uses “no man’s land” that has been operating for years without much attention.

Oil and gas assets in Kharkiv region are owned by 16 companies, of which 8 are actively producing.

The leader, of course, is the state, represented by PJSC Ukrgazvydobuvannya (producing 75% of gas and 20% of oil and gas condensate of the total volume in the country) and Ukrnafta (about 70% of oil and 10% of gas). The company not only produces, but also processes and then sells fuel through its own network of gas stations, which includes 18 in the Kharkiv region. That is why Kyiv and the regional “elites” are still in a confrontation over who will control the companies’ management.

The real oil and gas leader in Kharkiv region is the former Minister of Ecology and Natural Resources Mykola Zlochevsky. He is the beneficiary of Burisma Holdings, a company registered in Cyprus. The latter is the largest private oil and gas producer in Ukraine, having 25 special permits for hydrocarbon production. In 2014, Burisma companies produced about 700 million cubic meters of gas, which is 26% of the private gas production market in Ukraine.

Three companies owned by Zlochevsky through Burisma Holdings operate in Kharkiv region: energy service company Esko-North, First Ukrainian Petroleum Company LLC, and Aldea Ukraine. They own 10 fields, 5 of which are being actively developed.

As a reminder, Zlochevsky is wanted on suspicion of financial misconduct. 

Another major producer is Alpeko Investments from the British Virgin Islands, which the media associates with Kyiv businessman Oleksandr Loifenfeld.

Companies owned by oligarch Vadym Novynskyi are active in Kharkiv region. Two of his companies, Prom-Energo Product LLC and Ukrgazvydobuvannya PrJSC, own fields in the region.

Other notable people represented in the region: Yukhym Zvyagilsky, the Buryak brothers, Yuriy Ivanyushchenko and Ivan Avramov. Victor Pinchuk owns three fields through his company Geoalliance.

Interestingly, Pavlo Fuks, an oligarch with Russian citizenship, was also involved in the process of gas production in Kharkiv region. Companies controlled by him received a dozen special permits for gas production. 

For example, local deputies approved the granting of subsoil use for geological exploration, including pilot development, with subsequent production (industrial development of deposits) of oil, natural gas, and condensate located in Kharkiv region to Nayer Company LLC and Price Company LLC controlled by the oligarch. Nayer Company LLC received subsoil for use in the Majarivska area, and Price Company LLC received subsoil in the Filenkivsko-Cherniakhivska area.

By the way, Fuks is known not only for seizing gas production in Kharkiv and Poltava regions (as we described earlier), but also for a UAH 100 billion fraud in which he bought up assets of strategic enterprises of Ukraine, driving them to bankruptcy. Based on our materials, the Pechersk District Department of the Kyiv City Police registered a criminal case in the URPI 12024100060001442 under Part 2 of Art. 190 of the Criminal Code of Ukraine. However, the investigation is still ongoing. I wonder what will happen to the oligarch who is already under sanctions now? Given that he feels quite well with the sanctions imposed.

Read more about the mechanism of Fuks’ UAH 100 billion scam in the investigation.

Returning to the topic of gas and oil production in the Kharkiv region, in 2023, law enforcement officials revealed that due to the illegal activities of officials of PJSC NJSC Nadra Ukrayiny and a number of commercial entities, Ukraine de facto lost the right to the Sakhalin oil and gas field in the Kharkiv region.

This is despite the fact that more than UAH 1 billion was spent from the state budget on the development of this field. According to geological exploration data, gas deposits at this site amount to at least 15 billion cubic meters.

Thus, the oligarchs continue to gradually seize the subsoil of the Kharkiv region, leaving nothing for the state and citizens. But what about the ownership of the people enshrined in the Constitution?

Did you witness a crime?

Let us know about it. We will help protect the violated rights!

Share the post:

Last news

ALL NEWS ALL ARTICLES