The Security Service of Ukraine (SBU) is investigating energy distribution company Sumyoblenergo in a large-scale embezzlement case, the service said on April 12.
The company, which supplies electricity in the northern Ukrainian region Sumy Oblast, could not immediately comment.
The government holds a 25% stake in Sumyoblenergo, while oligarchs Konstantin Grigorishin and Ihor Kolomoisky own 34 percent each.
The SBU suspects the management of Sumyoblenergo of stealing Hr 80 million allocated by the government to upgrade the power grid in Sumy Oblast.
Sumyoblenergo failed to carry out 60 percent of the upgrade, according to the SBU, and channeled Hr 80 million to its affiliates.
The company’s executives also sold junk bonds in 2017-2020 in an alleged effort to hide its profits and channel them to affiliates, the SBU said.
The SBU also said that Sumyoblenergo could have compensated for the losses by increasing power prices for households and businesses.Most of the Ukrainian regional energy distribution companies, “oblenergos,” are owned either by Grigorishin or brothers Ihor and Hryhoriy Surkis. Kolomoisky co-owns three regional energy companies with Grigorishin.
