Naftogaz asks for criminal charges against Ukrnafta officials

Naftogaz of Ukraine, the state natural gas production and transit company, submitted an appeal to the State Fiscal Service to file criminal charges against officials of Ukrnafta (UNAF UK), Ukraine’s largest oil producer, for failing to pay UAH 7.3 bln in owed taxes and UAH 2.7 bln in owed dividends. “For more than half a year, Ukrnafta practically hasn’t paid its taxes, which has the signs of a crime,” stated Naftogaz’s letter to the service, as reported by the Ukrainian News agency on July 28. “We propose considering criminal charges against Ukrnafta officials based on the law.” The letter mentions two Ukrnafta board members by name who are alleged to be responsible for the failure to pay the debts.

Zenon Zawada: With the recent appointment of a new CEO, as well as the return of Ihor Palytsia, it was plausible to think that a compromise had been reached in the battle for control of the company between Ukrainian President Petro Poroshenko and minority shareholder Igor Kolomoisky. Yet this letter indicates that among the key issues at the heart of the conflict over Ukrnafta – taxes and dividend payments – hasn’t been resolved. The battle continues.