The Kyiv Commercial Court fined the acting head of the State Service of Geology and Subsoil of Ukraine, Serhiy Dekhtyarenko, and the head of the department, Olga Yakovleva, UAH 30,280 each for failure to comply with a resolution prohibiting amendments to the special permit for granite mining at the Korosten deposit in Zhytomyr region. The resolution concerned the assets of JSC Korosten quarry, which is controlled by sanctioned businessman Igor Naumets.
On October 30, 2024, the court ruled to prohibit any actions with permit No. 634, issued back in 1996. However, despite this, on November 14, a new order was issued by the State Geological Survey of Ukraine, which effectively allowed the change of the permit owner. First, it was reassigned to Novel Prom LLC, and then to Korosten Mining Company LLC.
The court considered these actions as a direct violation of the ruling. In addition to fines for officials, the court appealed to the Cabinet of Ministers and the Prosecutor General's Office to verify these actions, which may contain signs of a criminal offense under Article 382 of the Criminal Code of Ukraine (“Non-compliance with a court decision”).
The State Service for Geosciences and Mineral Resources insists that the court ruling did not contain sufficient legal grounds for its implementation:
- The second paragraph of the resolution prohibiting changes to the register is considered unenforceable, since such a register does not exist in Ukraine.
- The remaining points, in their opinion, were fulfilled, because at the time of the decision, another company already owned the permit — Novel Prom LLC.
The State Service claims that the new agreement with the "Korosten Mining Company" was legal, as the NSDC sanctions in 2023 removed the special permit from restrictions.
The court concluded that the State Geological Survey of Ukraine should have refrained from further changes to the special permit, since the ruling concerned document No. 634, regardless of its owners.
JSC "Korostenskyi Karyer" from the UNIGRAN group belonged to Igor Naumets, who has been under NSDC sanctions since 2023. Initially, the assets were blocked, but later the restrictions were relaxed, allowing the use of subsoil.
This case highlights serious gaps in the law regarding asset identification and management during sanctions.
The State Service for Geoscience and Mineral Resources of Ukraine has stated that it will appeal the court decisions. However, the Cabinet of Ministers and the Prosecutor General's Office have already begun inspections, and the officials face disciplinary or even criminal prosecution.
