The Security Service of Ukraine, known as the SBU, on March 11 uncovered a “major scheme” by which poor-quality petroleum products were illegally sold in gas stations across Ukraine.
Ukrainian media have identified the gas chain responsible for the scheme to be Glusco, which is owned by pro-Kremlin lawmaker Viktor Medvedchuk, the leader of the 44-member Opposition Platform – For Life faction in parliament.
According to the SBU, the scheme cost Ukrainian taxpayers over Hr 240 million ($9 million).
“Currently (the SBU) is conducting over 140 authorized searches in 13 office premises, 7 oil depots, on 13 sea vessels, 105 gas stations, and 2 customs clearance departments,” Security Service’s official statement reads.
SBU has opened criminal investigations into potential money laundering, tax evasion and abuse of power.
Medvedchuk has been on the hot seat since early February.
On Feb. 2, Ukraine’s National Security and Defense Council issued personal sanctions against Medvedchuk’s closest ally, pro-Kremlin lawmaker Taras Kozak and his three nationwide TV channels – NewsOne, Channel 112, and ZIK, which aired Kremlin propaganda about Ukraine.
Read More: Muted: Zelensky strikes hard against Kremlin’s agents in Ukraine
On Feb. 19, Medvedchuk and his wife TV host Oksana Marchenko have also been added to the Council’s sanction list for sponsoring terrorism. As a result, Medvedchuk lost Prikarpatzahidtrans, an oil pipeline operator that transported Russian diesel fuel into Ukraine and the European Union.
Now, the Security Service has gone after Medvedchuk’s last major business asset in Ukraine – Glusco, which is among the country’s top 10 gas station chains.
Like other businesses connected to Medvedchuk, the chain had been owned by Russians and was later transferred to Medvedchuk during the presidency of Petro Poroshenko, on questionable terms.
In 2016, low-profile Swiss-based company Glusco Energy, owned by Nisan Moiseyev, acquired a Ukrainian gas station network owned by Rosneft, a Russian state-owned energy company.
The Anti-Monopoly Committee authorized the purchase. At the same time, the SBU’s anti-corruption unit blocked imports of liquefied petroleum gas by 16 independent traders, giving more market power to local gas chains such as Glusco.
Around that time, Radio Free Europe/Radio Liberty published video footage of Moiseyev leaving Medvedchuk’s private jet. Moiseyev later admitted to being acquainted with Medvedchuk but said Medvedchuk did not have anything to do with his business.
