How Hroisman gave Ukrainian deposits to Yuzgaz B.V.

The government checkmated in one corrupt move. Today, the government has once again demonstrated their cynicism, donating one of the largest oil and gas-bearing areas of Ukraine to the notorious Yuzgaz B.V.

It all started in 2015, when the international giant Shell withdrew from the Production Sharing Agreement for one of Ukraine’s largest oil and gas sites, Yuzivska.

The Cabinet was to announce a new competition for the site. However, this was not done.

In July 2016, the next step was taken – the previous project operator, LLC “Nadra Yuzivska”, held a pseudo-competition on the development of the Yuzivska field. Yuzgaz B.V., with an authorized capital of 1,000 euros, registered a few weeks prior to this, “won” the competition.

Thanks to the active involvement of the public, for several years, it was possible not to allow the unknown company to develop strategic gas fields.

But in 2017, there were reports about the purchase of Yuzgaz B.V. by Slovak company NAFTA. In the meantime, even now in Ukraine, there is no reliable information about who the real owner of Yuzgaz B.V. is. NAFTA representatives themselves report that they have not fully registered their rights to Yuzgaz B.V. so far.

And while Ukrainians were wondering why cannot NAFTA, which allegedly owns Yuzgaz B.V., directly take part in the competition for the Yuzivska field, the Cabinet of Ministers pulled a shrewd move.

Today, the Cabinet of Ministers unexpectedly adopted an order, according to which, Yuzgaz B.V. will work on the Yuzivska field.

I managed to get some of the materials on the basis of which the officials made a decision on the Yuzivska field.

Just a few quotes:

“…in the materials, there is no information confirming the capacities of the company Yuzgaz B. V. in terms of the final beneficiaries of the company, financial and technical resources, experience in organizing the activities necessary to perform the work…”

“… the payment of additional payments and their size are limited to production volumes during 90 consecutive days… which may result in a decrease in the volume of profitable products that are distributed between the investor and the state…”

“…in the materials for the draft act and on the official website of Yuzgaz B.V., there is no information about the financial statements, and no documentary evidence has been provided that the beneficiaries of NAFTA (Slovakia) have entered into Yuzgaz B.V. …”

Let me emphasize once again that all these are the quotes from official government documents!

To my mind, we are witnessing a scam at its finest. If back in the time of Yanukovych, he engaged his “family” structures in the extraction in the Yuzivska field by 10%, today the authorities have gone way further in their corruption actions – 10 times further. After all, there is a steady impression that NAFTA is only serving as a cover in the scheme with an attempt of fraudsters in high offices to seize strategic resources.

Unfortunately, several months before the elections, the corrupt government begins to demonstrate the very worst that it can do.

And, it seems, only the election results can stop these scammers.


Viktoriya Vojtsitska
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