The Ukrainian government has come under international media scrutiny over a series of actions related to the nationalization of energy companies. As Forbes reports in a material by journalist Daniel Markind, the unprecedented state intervention in the work of the private sector threatens with lost investments, reputational damage and multi-billion dollar lawsuits.
In an article titled “Corruption in Ukraine poses a potential threat to post-war economic recovery,” the author draws attention to the trend of confiscating assets without the owners’ consent, forcibly replacing company management, and redistributing profits to the state. Such actions have already sparked a wave of lawsuits from foreign shareholders, including the British JKX Oil and Gas Group.
The story of Ukrnaftoburinnia, which before the war was one of the leading private gas-producing structures in Ukraine, received special attention. It controlled the Sakhalin field, which provided 5% of all gas production in the country. But already in 2023, as Forbes writes, the government began the process of seizing its assets, and by 2024 it had completely changed management, held meetings without the participation of shareholders, and directed profits to the state budget.
“This is not state policy — it is robbery under the guise of patriotic slogans,” said Andriy Pasishnyk, CEO of JKX Oil and Gas Group, in a comment to Forbes.
British shareholders have already filed lawsuits with international law firms worth over $1 billion. There are currently about twenty cases pending in Ukrainian courts, but there is little hope for an impartial trial due to pressure and the weak independence of the judicial system.
Against this background, the situation in the energy sector is critical: according to Gas Infrastructure Europe, Ukrainian gas storage facilities are only 12% full — while the average in Europe is 56%.
Such internal contradictions are causing concern among Western partners and casting doubt on the prospects for Ukraine's post-war economic recovery. The Forbes author warns: if the state does not guarantee the protection of private property, investor confidence will be undermined - with all the corresponding consequences.
