Based on the SBI materials, the court again arrested the corporate rights of a company that produces gas and oil from state subsoil

Following a repeated request by the Prosecutor General's Office and the SBI, the court has again arrested and transferred to the Asset Recovery and Management Agency the corporate rights of the company that misappropriated the Sakhalin oil and gas field.

The SBI has consistently maintained its position on returning illegally privatised property to state ownership.

In April, based on the SBI's materials, the court seized the corporate rights of four companies.

In particular, the assets of the following companies were seized:

• PJSC Ukrnaftoburinnya
• Sakhalinskoye LLC
• Sirius-1 LLC;
• East Up Petroleum LLC.
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The rights were transferred to the management of the Asset Recovery and Management Agency (ARMA).

However, on 3rd May, the Kyiv District Court cancelled its earlier decision to seize PJSC Ukrnaftoburinnya's corporate rights at the request of the company's lawyer.

Following the principled position of the SBI and the Prosecutor General's Office, the very next day, on 4th May, the Pechersk District Court of Kyiv re-seized and transferred the above-mentioned company to the management of the ARMA.

The SBI warns the "interested" parties against similar decisions regarding the rest of the seized companies and promises to act as quickly and principled as possible. For the Bureau, the public interest has always been the top priority.

As a reminder, in February 2023, the State Bureau of Investigation together with the Security Service of Ukraine exposed the illegal activities of former high-ranking officials who received illegal extra profits from gas production from state subsoil. The amount of damage to the state may reach hundreds of millions of hryvnias.

Law enforcement officers conducted searches at the residence of a former Member of Parliament of Ukraine of the VIII convocation. He, in prior conspiracy with officials of NJSC Nadra Ukrayiny, the State Service of Geology and Mineral Resources, Sakhalinske LLC and commercial structures, actually misappropriated state mineral resources in the period of 2003-2022.

Under the "patronage" of the former MP, state agencies issued special permits for gas production in blatant violation of procedures. As a result, the raw materials were much cheaper on paper, and the actual production volumes at the state-owned field were also underestimated. The difference was pocketed by the organisers of the fraud.

In particular, according to the investigation, due to the illegal activities of officials of NJSC Nadra Ukrayiny and a number of commercial entities, Ukraine de facto lost the right on the Sakhalin oil and gas field in Kharkiv region.

This is despite the fact that more than 1 billion hryvnias 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.

Investigative actions are ongoing in the framework of criminal proceedings initiated over abuse of office that caused grave consequences (part 2 of Article 364 of the Criminal Code of Ukraine).

The Office of the Prosecutor General of Ukraine is providing the procedural guidance.