Ukrtransgaz's work blocked as its bank accounts frozen in favor of Yanukovych's companies

Ukrainian gas transportation system operator JSC Ukrtransgaz's work has been blocked after its bank accounts were frozen in favor of companies linked to the oligarch clan known as disgraced ex-president of Ukraine Viktor Yanukovych's "family."

The State Executive Service of the Ukrainian Ministry of Justice blocked the accounts of JSC Ukrtransgaz and its branch, Ukrgazenergoservis, in pursuance of a ruling on a claim filed by Turbotrade LLC, Ukrtransgaz said on its website.

These accounts were used for the payment of wages to employees of the enterprises and handling of funds under the Framework Agreement between Ukraine and the IBRD on grants for technical assistance.

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This situation is a new round of litigation conducted by unfair suppliers against Ukrtransgaz to recover funds for allegedly supplied equipment for repairs to the Ukrainian gas transportation system in 2011-2013.

The claims were filed by LLC Turbolinks, LLC Turbotrade and LLC Prominvestavtomatika.

In the past five years, Turbotrade LLC has been trying to "recover" UAH 92.113 million, or US$3.27 million (UAH 46.442 million, or US$1.65 million, in "debt" for allegedly delivered equipment in 2012 and another UAH 45.671 million, or US$1.62 million, in fines) from Ukrtransgaz and its branch, Ukrgazenergoservis, through the courts of various instances.

Ukrtransgaz has publicly called on the Ministry of Justice, the Cabinet of Ministers of Ukraine, the General Prosecutor's Office of Ukraine and the Presidential Administration of Ukraine to take all necessary measures to prevent the illegal seizure of the bank accounts and blocking of the state enterprise's work.

UNIAN memo. Ukrtransgaz operates 12 underground gas storage facilities with a total active capacity of about 31 billion cubic meters. The facilities are an integral part of Ukraine's gas transportation system. The company is also the operator of the main gas pipelines, through which natural gas is transported from the Russian Federation to the EU countries, and also imported to Ukraine from the EU countries and was earlier used to import gas from Russia. Ukrtransgaz is wholly owned by NJSC Naftogaz of Ukraine.