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Energy Club and Dozens of Suppliers Appeal to the Verkhovna Rada Demanding Hearings on Pressure on the Energy Market

25.08.2025

The Energy Club, together with more than 40 leading energy supply companies, has officially appealed to the heads of the Verkhovna Rada Committee on Economic Development, Dmytro Natalukha, and the Committee on Energy, Housing and Utilities Services, Andriy Gerus. The appeal demands urgent joint hearings in the first ten days of September to resolve the crisis situation in the public procurement market for energy resources.

Reason for the Crisis: Supreme Court Resolution

The appeal was prompted by the resolution of the Grand Chamber of the Supreme Court (GC SC) dated January 24, 2024, in case No. 922/2321/22. This decision established that the total price increase for a commodity in public procurement contracts cannot exceed 10% of the initial contract price, regardless of actual market fluctuations.

Devastating Consequences for the Market

This decision, which began to be applied retroactively to contracts from 2021-2023, has become the basis for widespread pressure on suppliers from law enforcement agencies. The logic of the investigation is simple: anything exceeding 10% is considered a loss to the state budget.

The consequences for the energy market have already reached alarming proportions:

  • Hundreds of lawsuits: According to data from 25 companies, prosecutor’s offices have filed 336 lawsuits totaling over UAH 150 million.
  • Mass criminal proceedings: Criminal cases have been initiated against officials of most electricity suppliers by various law enforcement agencies (the Bureau of Economic Security, the Security Service of Ukraine, the Ministry of Internal Affairs, the State Bureau of Investigation, and the National Anti-Corruption Bureau).
  • Psychological pressure: Company executives are being summoned for interrogations, where methods of intimidation and threats are used.

Position of the Energy Community

The appeal emphasizes that the Supreme Court’s interpretation contradicts the original intent of the legislator. The position of the Verkhovna Rada and the Government, confirmed by the content of draft laws No. 13392-1 and No. 11520, is that the 10% limit should apply to each individual supplementary agreement, not the entire contract. This approach is consistent with European directives. Moreover, the European Commission recognizes that exchange-traded commodities, such as electricity and gas, should not be subject to such strict restrictions.

Given that on September 17, 2025, the Grand Chamber of the Supreme Court will consider a similar case (No. 920/19/24), offering a chance to revise this flawed practice, the energy community requests that parliamentary hearings be held before this date. “We ask the Committees, which are responsible for the integrity of the legislative process… to hold hearings in a joint session on the issue raised in the appeal in the first ten days of September 2025 (before the date of the GC SC session),” the letter states. The purpose of the hearings is to protect suppliers from unlawful actions by law enforcement, restore confidence in the procurement process, and ensure the nation’s energy security.

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