“The financial plan of Ukrtatnafta showed the “profits” of Ukrnafta,” an expert on abuse

The nationalization of Ukrnafta and Ukrtatnafta does not stand up to criticism, the seizure of shares from private shareholders was questionable, and the arguments for such a decision were false.

Wrote about this political commentator Mikhail Shnaider.

Ukrnafta is a mining company, its mission is to extract oil and gas and sell them at stock exchanges… Ukrnafta owns a small network of gas stations, which was supplied with purchased petroleum products. This completely refutes the widespread lie about the refusal to supply fuel to the army, because Ukrnafta is not and has never been a producer of fuel, but is exclusively a mining company.” - the expert emphasizes.

As Schneider recalled, “Ukrnafta” bought petroleum products for sale at its own gas stations and “satisfied all the requests of the military, the National Guard and other Defense Forces by providing charitable assistance… Was there even a need to seize 49.9% from private shareholders into the property of the military? Of course not”, – notes the observer.

The 50.1% share belonged to the state through Naftogaz, which, as the majority shareholder, could, at the direction of the government, appoint other management, in particular Sergei Koretsky. The expert pointed to the situation with Ukrtatnafta, because the government must approve the financial plan of the Kremenchug oil refinery. The document was sent to the Cabinet of Ministers on November 25, and it “sheds light on the artificial excess profitability of Ukrnafta and the baseless boasts of Koretsky.”

“With the actual income received in 2021 amounting to UAH 52.96 billion, the Ministry of Defense requests that in the presented financial plan for 2023, Ukrtatnafta’s income be approved at the level of 11.49 billion, which is almost 80% lower than in pre-war 2021, and with the dollar exchange rate 40% lower than now. The total income of Ukrnafta in 2021 amounted to 37 billion UAH, and together with 53 billion of Ukrtatnafta, the total income of both enterprises amounted to 90 billion UAH… In the financial plan of Ukrnafta for 2023, the government approved income at the level of 94 billion UAH, which should create the illusion of Koretsky’s superhuman managerial qualities,” – writes Schneider.

The expert adds that Ukrnafta (which, together with Ukrtatneft, is managed by Koretsky) transfers the produced oil and condensate to the Kremenchug oil refinery, “leaves the plant a penny in the form of payment for processing services, and takes the produced petroleum products and sells them independently”: “More than 50 billion in income that Ukrtatnafta could have received on its own, Mr. Koretsky single-handedly transferred from one pocket to another - into the treasury of Ukrnafta.” , thereby creating the illusion of a significant increase in profitability.”

The expert noted that only 234 thousand tons of petroleum products were supplied to the Ministry of Defense in 2023, and they produced 5 times more during this period, and pointed out the absurdity of the situation around Ukrtatnafta and Ukrnafta: “The headquarters of the Supreme Commander-in-Chief withdraws part (minority) of the shares of Ukrnafta into the ownership of the military under the slogans of providing fuel to the Armed Forces of Ukraine, at a time when the company only produces oil and is not a producer… Ukrnafta takes for itself all the income from the plant, which it promotes as its own achievements, and to the military, for whom these shares were supposedly confiscated, it ships only 20% (!!!) of the petroleum products received from refining, moreover, at market prices, also adding up a billion VAT… Bring 250-300 thousand tons of fuel per year (20-25 thousand tons/month) and any trader could deliver at market prices to the Ministry of Defense,” – he sums up.