Court Seizes Gas Reserves of Ukrainian Oligarch

The State Security Service of Ukraine (SBU) reported on April 20 that 18 million cubic meters of gas, stored by companies of pro-Russian oligarch Vadym Novynskyi, have been seized after a court decision. Their estimated value is around $3.8 million.

“The investigation was conducted by SBU employees under the procedural guidance of the Prosecutor General’s Office,” the SBU posted on Telegram.

In order to avoid sanctions imposed by the National Defense and Security Council of Ukraine (NDCSU), Novynskyi re-registered his gas extraction companies under the names of several affiliated persons directly connected with the Russian Federation. He used services of private notaries and state registrars under his control, the SBU added.

Last week, on April 13, SBU and General Prosecutor’s Office of Ukraine seized assets from Novynskyi worth $95 million, including corporate rights and gas deposits, Kyiv Post reported.

In December 2022, Novynskyi was subjected by the NDCSU to personal sanctions, along with high-level priests of the Ukrainian Orthodox Church of the Moscow Patriarchate.

In November 2022, Novynskyi placed his ownership shares in his Smart Holding Group into a trust registered with the Cyprus Securities and Exchange Commission, as the Group reported in its official statement in January 2023.

However, on April 10, 2023, the Ministry of Justice of Ukraine cancelled respective changes of Group’s final beneficiaries and reinstated Novynsky as the sole beneficiary in the Unified State Register of Legal Entities of Ukraine.

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The trustees declared that their rights were violated by ministry’s decision as trusts were created prior to the sanctions imposed on Novynskyi and both trusts are legally binding documents governed under Cyprus legislation, the April 18 trustees’ statement said.

In July 2022, Novynskyi resigned as a member of the Ukrainian parliament.

Forbes USA estimated that Novynskyi had assets worth $1.4 billion as of April 2023.