The Prosecutor's Office is demanding that 67 million hryvnias be returned to the state for electricity
In Kyiv, the prosecutor’s office is seeking through the courts to recover more than 67 million hryvnias for the state—an amount that, according to the investigation, an electricity supplier received at an inflated price. This concerns contracts signed in 2022 between the Dnipro-Donbas Canal Administration and a private company. Expert analyses showed that the price of electricity was already inflated in the main contract and was subsequently raised even further.
The Podil District Prosecutor’s Office of Kyiv has filed a petition with the Commercial Court of Kyiv Oblast. Prosecutors are seeking to have the electricity supply contracts and their supplementary agreements declared invalid, as well as to recover over 67 million hryvnias for the state budget. This case concerns the purchase of electricity for the Dnipro-Donbas Canal Administration. This agency falls under the jurisdiction of the State Agency for Water Resources.
How the Overpayment Occurred
In 2022, the Dnipro-Donbas Canal Administration entered into electricity supply contracts with a private company. Subsequently, the parties signed a series of supplementary agreements. Through these agreements, the price of electricity was gradually increased. However, according to the prosecutor’s office, the problem was not limited to subsequent price increases. Forensic examinations revealed that the price had already been inflated at the time the main contract was signed.
Later, the cost of electricity was increased even further. According to the experts’ findings, the price agreed upon by the parties significantly exceeded its market value. As a result, the supplier received over 67 million hryvnia, which, according to the prosecutor’s office, was paid in excess of the reasonable cost of electricity. The prosecutor’s office believes that this caused losses to the state budget in the corresponding amount.
What the Court Will Now Decide
The prosecutor’s office is asking the court to declare the electricity supply contracts and their supplementary agreements invalid. The lawsuit also seeks to recover over 67 million hryvnias from the supplier and return these funds to the state budget.
Currently, the Kyiv Regional Commercial Court has already opened proceedings in the case. In other words, the court has begun reviewing the prosecutor’s office’s lawsuit. No final decision has been reached in the case yet. Whether the contracts and supplementary agreements were illegal, and whether the 67 million hryvnias are subject to recovery, will be determined by the court during the proceedings. The prosecutor’s office cites the results of forensic examinations, which indicate that the cost of electricity was higher than the market rate. This was reported by the Kyiv City Prosecutor’s Office.
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