“Medvedchuk’s Pipeline” to Be Permanently Returned to the State: What the State Property Fund Decided
10 June 10:36
The State Property Fund of Ukraine has initiated a procedure aimed at restoring the state’s control over the Ukrainian section of the “Samara–Western Direction” main oil pipeline, better known as the “Medvedchuk Pipeline.” This was reported by the SPFU press service, according to "Komersant Ukrainian"
The SPFU stated that it has already officially initiated the lifting of all seizures imposed on this strategic asset in previous years.
This is one of the most high-profile assets, which has long been associated with the inner circle of former MP Viktor Medvedchuk. Once the encumbrances are lifted, the oil products pipeline is planned to be transferred to the management of JSC “Ukrtransnafta” to restore its full operation in the interests of the state.
What is included in the strategic asset
The Ukrainian section of the “Samara – Western Direction” oil pipeline is not just the pipeline itself. The facility includes:
- over 1,400 kilometers of oil and petroleum products pipeline;
- pumping stations;
- storage tanks;
- production complexes;
- related technological infrastructure.
It is precisely because of its scale and importance for fuel logistics that this asset is considered strategic for the state.
Why the State Property Fund went to court
The State Property Fund emphasizes that the state’s ownership of this facility has already been definitively confirmed by Ukrainian courts, including the Supreme Court. That is why, in the SPFU’s view, the continued enforcement of the seizures imposed in 2021 and 2023 has lost its purpose.
The Fund has now filed a petition with the High Anti-Corruption Court to lift these restrictions. Afterward, the asset is to be officially transferred to the management of Ukrtransnafta.
What will happen after the seizures are lifted
The SPF stated that immediately after the seizures are lifted, they plan to transfer the oil pipeline to JSC “Ukrtransnafta.” The goal is not merely a formal transfer of state control, but the restoration of the facility’s full-scale operation.
In effect, this marks the conclusion of a long-standing effort to return this asset to state control.
Why the oil pipeline is called “Medvedchuk’s pipeline”
The name “Medvedchuk’s pipeline” has stuck to this asset due to a long-standing political and business scandal surrounding its control. After sanctions were imposed against Viktor Medvedchuk, his inner circle, and affiliated companies in February 2021, the company “Prykarpatzakhidtrans,” which operated a section of the pipeline, also fell under the restrictions.
Fuel pumping was carried out by Proton Energy, a company linked to Medvedchuk’s friend, the Israeli Nisan Moiseev. It was this entity that was also linked to the Glusco gas station network.
Among the owners of “Prykarpatzakhidtrans” were named Belarusian businessman Mykola Vorobey and German citizen Anatoliy Shefer, who was also linked to Medvedchuk’s inner circle.
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What happened earlier with the pipeline’s management
Back in June 2021, “Ukrtransnafta” was granted the right to manage this oil pipeline for a period of five years. This right included the transportation, storage, and transshipment of petroleum products to rail and road transport.
Now the State Property Fund of Ukraine (SPFU) wants to bring the process to its logical conclusion—to completely remove all legal restrictions and firmly establish state control.
What is known about the Medvedchuk case
Law enforcement officials previously stated that they had gathered evidence in the case regarding the illegal privatization of the “Samara – Western Direction” oil pipeline. On this basis, Viktor Medvedchuk and four former top managers of the company “Prykarpatzakhidtrans” were notified of their status as suspects in the misappropriation and management of the state-owned oil pipeline.
The indictment against Medvedchuk has already been sent to court. Investigators believe the case involves a scheme to embezzle a state asset worth 1.4 billion hryvnias and launder over 29.9 million euros in criminal proceeds.
Medvedchuk’s Arrest
Medvedchuk himself was arrested on April 12, 2022, as a result of a special operation by the SBU. He is a defendant in several criminal cases involving treason and economic crimes.
On September 21, Viktor Medvedchuk was exchanged for Ukrainian servicemen held captive by Russia. As a result, 215 defenders of Ukraine were returned from captivity.
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