The National Agency of Ukraine for the Detection, Search and Management of Assets Derived from Corruption and Other Crimes (ARMA) has proposed that the assets of the Glusco gas station chain be transferred to the management of PJSC Ukrnafta under a special procedure.
According to ARMA’s Facebook post, the proposal was supported by the Ukrainian Energy Ministry at a meeting attended by representatives of relevant ministries and state-owned companies on Monday.
ARMA head Olena Duma said that the future contract should specify the minimum amount of monthly revenues to the budget for the management of the network’s assets at the level of UAH 5 million, coordination with the agency of changes in the management of companies whose corporate rights will be transferred to the manager, as well as the submission of specific reporting information on all accounts.
“I firmly believe that the growth of the guaranteed income of the state at least 13 times is the best evidence of the effectiveness of new approaches in the work of ARMA. In addition, we are only talking about a minimum amount, which will increase as fuel sales increase. Now the government has the final word – and dozens of gas stations across the country will start to really work for the state budget”, – the report quotes the words of the head of ARMA Elena Duma.
At the same time, Naftogaz Oil Trading LLC (NOT), which manages Glusco’s assets, reiterated that they effectively and transparently manage the network, and ARMA’s actions to terminate management contracts are unlawful.
“Naftogaz notes that the termination of the contracts occurred with numerous legal violations, the inspection was conducted improperly, and ARMA’s actions jeopardize the preservation of physical evidence in the criminal proceedings against the former owner of these assets, Viktor Medvedchuk.”
In addition, ARMA and NOT are currently parties to the ongoing economic concentration harmonization procedure.
“By the time further actions to comply with the provisions of the antimonopoly legislation of Ukraine are agreed upon, any actions to change the manager are unlawful and may result in significant penalties for the participants of such concentration,” Naftogaz clarified.
“NOT” continues to consider the concluded contracts of property management Glusco valid, and will fulfill them until the moment of the resolution of disputes”, – summarized in the company.
As reported, the Cabinet of Ministers of Ukraine in May 2022 agreed the ARMA proposal to transfer to the management of NJSC Naftogaz of Ukraine arrested assets of Glusco (until 2018 – the network of Rosneft), which were associated with Viktor Medvedchuk,
NOT was identified as the asset manager, with whom ARMA subsequently entered into a fixed-term management agreement.
At the end of July 2023, the recently appointed head of ARMA, Olena Duma, announced that the National Agency would conduct audits of the efficiency of management of the largest assets, and an audit of the efficiency of management of the Glusco network of gas stations by Naftogaz Ukrainy has already begun.
According to her, ARMA has received information about improper fulfillment of the contract terms by the manager, in particular, the submission of unreliable data regarding expenses and income from management activities.
“The manager has been using Glusco’s assets for more than a year, which are actually 89 gasoline filling stations, eight land plots, two oil depots and corporate rights of 35 companies. At the same time, only UAH 1.151 million has been transferred to the state budget for the whole time, which raises well-founded questions about the efficiency of management,” she said.
On August 3, ARMA announced the termination of contracts with NOT to manage the assets of the Glusco gas station network.
At the same time, Naftogaz said that under the management of “NOT” resumed the work of 81 filling stations and one oil depot, which did not work for a year and a half, timely payment of wages to employees. From August 2022 to July 2023, 289 million UAH of mandatory payments to the state and local budgets were paid.
The head of Naftogaz Ukrainy, Oleksiy Chernyshov, said that during the period of managing the assets of Glusco, the group invested significant funds in the restoration of the network, repaid its debts, and at the request of ARMA paid them “for some part of future profits, as they are not yet in question.”
Naftogaz’s 100% subsidiary Ukrgasvydobuvannya has a network of 21 U.GO gas stations in Kharkiv and Kharkiv region. Starting from 2022, Naftohaz Oil Trading also has the right to use the brand and plans to expand its network in other regions.
