‘Investigation of Corruption in Energy Sector is a Top Priority’ – NABU Director

Director of the National Anti-Corruption Bureau (NABU) Semyon Kryvonos said that NABU investigators are focusing maximum attention on corruption risks in the energy sector as an area with a high chance for abuse.

“We determined that along with the defense sphere, with the reconstruction sphere, the priority is the energy sphere. The amount of funds that will be directed to reconstruction requires maximum attention from anti-corruption authorities,” Kryvonos said during the Forbes “Energy of Business” forum.

“That is why the investigation of corruption offenses in the field of energy is one of the top priorities of NABU.”

Currently, the Anti-Corruption Bureau is investigating 86 criminal proceedings related to corruption schemes in the energy sector.

Kryvonos also cited the most common corrupt practices in this area, including:

• abuse of public procurement at inflated prices of goods and services for energy facilities by large companies with state funds and creation of conditions for specific companies;
•  overcharging of prices during restoration and construction of new energy facilities;
• involvement of private partners by state companies on notoriously unfavorable terms in order to increase the production of gas or other natural energy resources;
• import of fuel and lubricants at inflated prices;
• sale of state-produced coal at reduced prices by private commercial structures;
• manipulations on the electricity market, which may result in abusing the monopoly status of certain companies.

“Disclosing this or that crime is not an absolute guarantee of reducing the level of corruption. It only treats the symptoms of the ‘disease,’ not its causes,” said Kryvonos.

“We need deep and systemic changes that will make corruption impossible.”

The National Anti-Corruption Bureau is engaged in combating corruption and other criminal offenses committed by high-ranking officials and posing a threat to national security.