Energy Community demands that Ukraine raise tariffs for oblenergos controlled by a Russiansubsanctioned company
22 May 2025 16:48
The secretariat of the Energy Community demands that the National Commission, which carries out state regulation in the sphere of energy and public utilities, allow Ukrainian oblenergos, which are still controlled by Russian oligarch Oleksandr Babakov, to raise tariffs. This is indicated by letters of the organization with the signature of its director Arthur Lorkowski, which appeared in the possession of the editorial board of Glavkom , informs “Komersant Ukrainskyi” 
.
Babakov still controls a stake in five Ukrainian oblenergos – Khersonoblenergo, Kirovohradoblenergo, Zhytomyroblenergo, Rivneoblenergo and Chernivtsioblenergo. Its energy assets have so far failed to be seized.
Back in 2023, the Ministry of Justice filed a lawsuit with the Supreme Anti-Corruption Court to seize the assets of the owner of VS Energy, who is Babakova. The UK, the US and Ukraine put the Russian’s name on their sanctions lists. And at the end of 2023, Ukraine officially declared Babakov internationally wanted.
The Energy Community’s letters contain a blatant demand to the NKREKU to allow the respective oblenergos to raise tariffs. Otherwise, according to the organization, they will continue to operate without profit.
At the same time, Energy Community, as it is clear from the text of the letter, is aware of Babakov’s sub-sanctioned status. At the same time, the organization’s director does not see this as a problem. Lorkowski, in particular, argues, allegedly the blocking of Babakov’s assets and the ban on his withdrawal of capital from Ukraine should not prevent his oblenergos from earning more.
“The Secretariat does not question the restrictions applied to the owners of the above-mentioned OSRs, such as blocking assets and business transactions and preventing the withdrawal of capital from Ukraine. The Secretariat admits that such restrictions ensure that the ultimate beneficiaries cannot benefit from the profits of OSRs, thus the effective application of sanctions makes the application of discriminatory tariffs against companies unnecessary,” writes Lorkowski.
At the same time, the organization admits in the letter that the tariffs for the specified oblenergos 2024 established with the application of incentive regulation.
“Also in their establishment took into account changes to the decree № 1009, which excluded licensees, whose controller is sub-sanctioned persons. That is, Energy Community has no grounds to claim illegal or discriminatory actions on the part of the regulator,” the publication explains.
Despite this, the Energy Community demands that the NKREKU “provide explanations”. They say that in the case of oblenergos controlled by Babakov, the Europeans “need to make a decision”.
As you know, investigators of the State Bureau of Investigation under the procedural guidance of the Office of the Prosecutor General are investigating several charges against the financial and industrial group VS Energy. According to the SBI’s version, they are talking about embezzlement of property and committing “by the criminal organization Luzhniki, which is represented by the financial-industrial group VS Energy(associated with Babakov – ed.), deliberate actions to change the borders of the territory or state border of Ukraine and violate the procedure established by the Constitution of Ukraine, by prior conspiracy of a group of persons”.
