Pre-Trial Inquiry into Green Energy Tariff Fraud
The National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor's Office (SAP) have finalized their pre-trial investigation concerning the embezzlement of funds allocated under the green energy tariff scheme in the temporarily occupied areas of Zaporizhzhia region. Between 2019 and 2020, a former member of the Donetsk Regional Council, together with his brother, oversaw companies engaged in producing electricity from renewable sources. They constructed solar power plants with a combined capacity of approximately 60 MW in the Vasylivka district of Zaporizhzhia region.
Following Russia's full-scale invasion and subsequent occupation of parts of Zaporizhzhia, these solar facilities lost connection with Ukraine's United Energy System. Despite damage to the plants and evacuation of staff, the companies continued to report electricity generation and receive payments under the green tariff, even though no actual energy production was taking place. Their reports contained deliberately false information about electricity output and the operational readiness of the plants.
Funds acquired through this scheme were funneled via affiliated companies. The total financial damage identified in this case amounts to 141.3 million UAH. Notably, the former deputy also held the position of Deputy Head of the Office of the President of Ukraine and served on the supervisory board of the national oil and gas company Naftogaz during 2019-2020.
Significance of the Investigation
The completion of this investigation highlights critical breaches in the administration of the green tariff system, a key component of Ukraine's energy security—especially vital amidst ongoing conflict. This case may set a precedent for tackling corruption related to state finances and energy programs, potentially affecting public trust in governmental institutions and shaping Ukraine’s investment environment going forward.