Corruption schemes in Ukraine’s fuel business do not disappear — they only change forms. The BRSM-Nafta gas station network has long been associated with ex-Energy Minister Eduard Stavytskyi, who fled abroad back in 2014.

Now, the shares of its founder Andriy Biba have come under corporate arrest, and he himself, according to rumors, may become the next candidate for the wanted list. We are publishing this investigation to remind how one of the largest “gray” schemes in the fuel market worked — with political cover, tax holes, and dubious assets.

Founder of the scandalous gas station network, considered close to the fugitive ex-Minister of Energy Eduard Stavytsky, came under corporate arrest

The BRSM-Nafta gas station network has once again found itself at the center of a scandal. This time, the reason for increased attention was the arrest of shares in a dozen related structures belonging to the network’s founder Andriy Biba. The latter, according to rumors, is a likely candidate for being put on the wanted list following ex-Minister of Energy and Coal Industry Eduard Stavytsky, who is considered the de facto owner of the scandalous network.

Photo — Eduard Stavytsky

The black streak in the life of “BRSM-Nafta” began in 2014 — immediately after Viktor Yanukovych and his closest associates fled Ukraine. Among them was Eduard Stavytsky, who held the post of Minister of Energy and Coal Industry. He himself always denied this connection, but the facts spoke against him — a 50% stake in LLC “BRSM-Nafta” was registered in the name of his mother-in-law Valentina Ushakova. Another connection between BRSM and Stavytsky, who has been hiding in Israel under the surname Rosenberg since 2014, was never interrupted.

It concerns LLC “Bel Oil” (the State Fiscal Service includes it in the “BRSM-Nafta” group), which continues to list Volodymyr Drobot as its owner. Under Yanukovych, he worked as chief specialist for combating corruption at the State Geological Service during the period when it was headed by Stavytsky, and later became, as is believed, a trusted person of the latter.

It was these connections that led to problems for BRSM almost immediately after Stavytsky was put on the wanted list in 2014. They intensified after a fire at one of the company’s oil depots in Vasylkiv in the summer of 2015. The flames were extinguished for 10 days, and 6 people died during the liquidation of the disaster. According to the investigation, the fire at the BRSM oil depot occurred during the production of “bodaga” (diluted fuel).

Later, Prosecutor General Yuriy Lutsenko reported on his Facebook page that “as part of the case of tax evasion of about UAH 1 billion, 250 employees of the GPU and SFS are conducting searches in the BRSM group of companies.” According to the court decision, equipment at 5 oil depots, 41 gas stations and 4 office premises in 21 regions has been seized. “In the future, we plan to transfer this property to the responsible storage of the Ministry of Energy,” Lutsenko added. The State Fiscal Service also took up the case against BRSM, opening criminal proceedings on the grounds of crimes under two articles of the Criminal Code of Ukraine — Part 3 of Art. 212 (tax evasion on an especially large scale) and Part 1 of Art. 204 (Illegal production, storage, sale or transportation for the purpose of sale of excisable goods).

Photo — Yuriy Lutsenko

“Officials… of enterprises that are part of the BRSM-Nafta group, during the audited period, carried out illegal production, storage for the purpose of sale, transportation and sale of illegally produced excisable goods, namely gasoline and diesel fuel at oil depots and gas stations used by enterprises of the BRSM-Nafta group, using equipment that ensures the mass production of such goods” — these are the conclusions reached by the investigators.

At the beginning of the year, the Ministry of Energy and Coal Industry established a new enterprise — SE “Ukrainian Fuel and Energy Company” (UTEK), to whose balance sheet the seized property of the BRSM-Nafta group was planned to be transferred over time.

This context harmoniously fits the decision of the Dnipro District Court of Kyiv, published last week. According to journalists, it imposed an arrest on the corporate rights of Andriy Biba — the founder of the BRSM-Nafta group. The “arrest list” included Biba’s 10% shares in the companies “BRSM-Group”, “BRSM-Nafta”, “AZS-Prim Oil”, “New Fuel Society”, “Logos-2016”, “Naftozakhidne NV”, 50% stakes in the enterprises “Naftosbut”, “BRSM”, “DAR-S”, “Macro Pois Plus”, “Vit”, “Insa”, “Ukrtransagro”, “Tanya”, “Chas-LTD” and “Firma Gazpromservice”. As well as a 100% share in the production enterprise “Bytrembudmaterialy”, which gave the name to the BRSM group.

Photo — Stanislav Stavytskyi surrounded by women

The initiator of the arrest was LLC “Financial Company Gron”, which claims that Biba did not pay it UAH 4.5 million. The debt arose because Biba did not pay for the purchase of a share in LLC “Rybtorg Group”. However, there is a suspicion that both the plaintiff and the applicant in this process are playing a “private game”, as evidenced by at least two facts. First, before Biba purchased a share in Rybtorg Group, its main owner was LLC “Budinvestsystem”, registered to Lyudmyla Solomyana. It was to her in December 2014 that Eduard Stavytsky’s son Stanislav issued a power of attorney to represent his interests in banks, Taras Shevchenko National University, the tax office and the military enlistment office. Second, the “sale” transaction of “Rybtorg Group” was carried out more than four years ago — in February 2013. And the fact that Biba has not been able to scrape together a rather modest amount for him during this time looks strange.

Unless, of course, we assume that the asset arrest process is controlled, allowing Biba to get ahead of his opponents and freeze his property. Moreover, according to sources, he may face being put on the wanted list in the case of fraud by BRSM group companies.

«OLIGARCH», Oleg KULBIDA