High Anti-Corruption Court lifts arrest of oligarch Firtash’s regional gas companies

High Anti-Corruption Court lifts arrest of oligarch Firtash’s regional gas companies

In May 2022, the Cabinet of Ministers transferred Firtash’s regional gas companies to the management of Naftogaz.

On June 25, the Supreme Anti-Corruption Court canceled the arrest of shares of regional gas companies of businessman Dmytro Firtash. The corresponding decision was published in the court register, Economic Pravda reported on Friday, June 28.

In an editorial comment, the Supreme Anti-Corruption Court confirmed the decision. However, they stated that “the reasons for this decision will be in full text next week.” Journalists have also contacted and are awaiting a response to the situation from the Asset Tracing and Management Agency (ARMA).

What is known about the confiscation of Dmytro Firtash’s assets

At the end of May 2022, at the request of the State Bureau of Investigation (SBI), the court transferred to the management of ARMA the seized private corporate rights to 26 regional and city gas distribution system operators. In the same month, the government transferred these regional gas companies to the management of Naftogaz.

A year later, in May 2023, the SSU and BES announced suspicion against Dmytro Firtash in the case of causing damage to the state budget of UAH 18 billion. The SSU then reported that Firtash’s companies bought gas from a structure controlled by him, but in fact received no more than 30% of the paid volume of gas. The deficit was covered by state-owned gas - regional gas companies simply took away the lost fuel from the gas transportation system of Ukraine. At the same time, the state was almost not paid for this, citing a lack of funds. Firtash’s companies accounted for 70% of all gas distribution networks in Ukraine.

On June 25, 2024, President Volodymyr Zelenskyy, by decree, extended sanctions against Ukrainian businessmen Dmytro Firtash and Pavlo Fuks, as well as a number of Russian oligarchs for ten years.

On June 26, 2024, Group DF stated that it considers the decision of the National Security and Defence Council to extend sanctions against its shareholder Dmytro Firtash as an attempt to put pressure on business. Group DF is appealing the sanctions in a Ukrainian court and intends to appeal to international ones. The company believes that the imposed sanctions are a form of pressure on business.