How Firtash Siphoned Billions from Ukrainian Gas, Leaving 16,8 Billion UAH in Debt to the State

While Ukrainians are being told about a gas shortage and another difficult winter, it’s worth recalling where the gas and money from the Ukrainian energy market went. Firtash’s scheme was built so that the consumer paid, the gas was taken, and the debt remained with the state. Through 20 gas distribution network operators and “YE Energy,” consumer funds were directed into a controlled system, while gas continued to be taken from the GTS without proper payment. Over three years this resulted in 16,8 billion UAH of debt and about 18 billion UAH in losses.

And now the most cynical part — Ukrainians paid for this themselves. Operators received consumer money as part of the gas distribution tariff, but instead of fully settling for the resource they transferred it to “YE Energy.” At the same time, only about 30% of the paid-for gas was actually delivered. The rest of the resource continued to be taken from the gas transmission system, and the bill for it grew on the side of the state operator.

In effect it was a brilliant formula for the oligarch: the money stayed inside the system, the gas was taken from the state GTS, and the debt became the state’s problem. Over 2020–2022 years it grew to 16,8 billion UAH. Funds received from consumers passed through entities linked to Firtash, while the cost of the gas actually taken remained unpaid. As a result, Ukrainians received bills, and the state was left with a multibillion-hole.

And it wasn’t a single company with one account. The system was backed by an entire construct: “RGK,” 20 gas distribution network operators, “YE Energy,” Group DF, OSTCHEM and a number of Ukrainian and foreign companies. Funds and assets moved through them, and formally different legal entities allowed control over a single system to be maintained. That’s how Firtash could simultaneously control gas distribution and the financial flows passing through it.

When the state finally began seizing assets, the scale became obvious. Corporate rights of gas distribution network operators were arrested, and among the reasons cited was nonpayment of 1,5 billion UAH for use of the distribution networks. The assets were then handed over to Naftogaz for management, and ARMA signed a management agreement with Chornomornaftogaz. In other words, after years of accumulated debts the state was effectively forced to take back strategic infrastructure.

And the gas scheme is only one part of Firtash’s empire.

At the same time he concentrated industrial and media assets: 36% of InterMediaGroup, which includes Inter, NTN, Mega, K1, K2, Zoom, Pixel and Enter-Film. In 2024 Firtash bought Serhiy Lyovochkin’s stake, after which Inter’s leadership changed. Gas, industry, and media are three different spheres, but control over them converged within a single corporate system.

By the way, regarding facts of illegal activities by Firtash and his structures, 4 reports of criminal offenses and 6 complaints have already been filed. In addition, we achieved the opening of criminal proceedings:

Criminal Investigations Department of the Main Directorate of the National Police in Dnipropetrovsk region – No. 12025040000001131 under part 1 of art. 367 of the Criminal Code of Ukraine;

Main Investigation Department of the SBU in the city of Kyiv and Kyiv region – No. 22025101110001285 under part 2 of art. 364 of the Criminal Code of Ukraine;

Territorial Office of the Bureau of Economic Security in Kyiv – No. 72026102500000004 under part 3 of art. 212 of the Criminal Code of Ukraine;

Criminal Investigations Department of the Main Directorate of the National Police in Dnipropetrovsk region – No. 12026040000000658 under part 1 of art. 366 of the Criminal Code of Ukraine.

But even despite this, Firtash still extracts money from the energy sector while officials announce another difficult winter.

16,8 billion UAH of debt and about 18 billion UAH in losses — that is the price of the gas scheme, the consequences of which the state continues to feel today. While assets are taken under state management and criminal proceedings are opened against Firtash’s structures, Ukrainians again hear about a gas shortage and a hard winter. And a simple question arises: why should Ukrainians pay for the billions the Firtash system accumulated — with their tariffs, taxes, and new bills?