Ukrainian media: gas fields in Poltava will be awarded to Interior Minister’s associates

The State Service of Geology and Mineral Resources of Ukraine will give 11 gas-bearing areas in the Poltava region, without competition, to the company connected with the associates of Interior Minister Arsen Avakov, as stated in an article in Economichna Pravda newspaper.

All eleven sites belonged to the Golden Derrick firm during Viktor Yanukovych’s presidency. They were confiscated during Petro Poroshenko’s first year as president.

According to sources, applications for the out-of-competition registration of these areas have been submitted to the State Service by Angro Invest LLC. Gas producers know little about this company.

Economichna Pravda discovered that Angro Invest was founded by Roman Druzhbin, a known business partner of Oleksandr Pavlyuchenko’s Central Oil and Gas Transport Company, LLC. Druzhbin is also an assistant to the People's Deputy from the People’s Front, Ihor Kotvitsky, who is believed to be Interior Minister Arsen Avakov’s confidant.

According to Economichna Pravda’s sources, on December 5, Geology and Mineral Resources conducted an out-of-competition re-registration of special permits for 19 gas-bearing areas in the Poltava region. All of these areas were transferred to East Europe Petroleum LLC., which until recently was called Golden Derrick.

Golden Derrick received three dozen gas areas in the Poltava region on an out-of-competition basis in Yanukovych’s time, including the aforementioned 19 sites. After the change of power in 2014, the company lost all of these licenses.

East Europe Petroleum is currently owned by Pavlo Fuks, who bought it from Eduard Stavitsky, Yanukovych’s Minister of Energy. According to market participants, control over the gas fields is needed by political groups and their companies in order to put them up for sale.

There will be no shortage of investors’ interest in these assets. About 70% of Poltava territory contains natural gas, making it the main natural gas extraction region in the country.

  gas, Arsen Avakov, Poltava region, Pavlo Fuks

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