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Protecting Energy Suppliers from Losses: Energy Club Begins Preparation of a Collective Lawsuit to Challenge Resolution No. 1178

30.03.2026

Energy Club held a private working meeting for its members focused on developing a joint strategy for the legal defense of energy supply companies in disputes with the Prosecutor’s Office. The main topic of discussion was a draft lawsuit to the administrative court challenging ambiguous provisions of the Cabinet of Ministers of Ukraine (CMU) Resolution No. 1178, which regulates public procurement under martial law.

The event was moderated by Artem Martyniuk, Vice President of Energy Club. He emphasized that the market requires a consolidated position to protect businesses from retrospective lawsuits and legal uncertainty.

The discussion was initiated by Energoresurs RI Group, which also authored the initial draft of the lawsuit. As the company’s Director noted, suppliers are currently facing mass litigation from the Prosecutor’s Office seeking to invalidate supplementary agreements and recover allegedly unjustifiably received funds. First-instance courts often rely on Supreme Court practice, which suggests that Resolution No. 1178 does not override the 10% price fluctuation limit established by the Law “On Public Procurement.”

Energoresurs RI Group proposes creating a legal precedent by filing a collective administrative lawsuit. The strategy is twofold:

  • If the court denies the claim and recognizes the provisions of the Resolution (specifically paragraphs 17 and 19) as fully lawful and permitting price changes without the 10% restriction, this ruling will serve as a powerful defense for suppliers in commercial disputes.

  • If the court declares the resolution (or specific clauses) unlawful, suppliers will gain the right to demand compensation from the Cabinet of Ministers of Ukraine for damages caused by the implementation of this illegal regulatory act.

During the meeting, market participants and leading lawyers discussed the risks and weaknesses of the proposed action plan:

Ruslana Strilets (ECU) expressed concerns regarding the demand to cancel paragraph 19 of the “special characteristics” (osoblyvosti). According to her, this specific paragraph currently enables the use of formula-based pricing. Its cancellation could lead to a return of the strict 10% limits of the primary Law, complicating operations with clients.

Oleksandr Kudym (Euro Trade Energy) added that the situation is already critical: prosecution authorities are actively filing lawsuits, attempting to invalidate even formula-based pricing by citing appellate court decisions.

Oleksii Gnatenko (Juscutum Law Firm) provided a procedural analysis of the draft lawsuit. He warned of significant risks regarding delays in the Kyiv District Administrative Court. The lawyer recommended against involving a wide range of third parties (Prosecutor’s Office, NEURC, Ukrenergo), as the failure of even one representative to appear could block the case for months. The sole defendant should be the Cabinet of Ministers. Furthermore, the expert emphasized that the lawsuit must be filed directly by the supplier companies whose property rights have been violated, as Energy Club, being a non-governmental organization, cannot be the proper plaintiff in this category of cases. Juscutum also offered its expertise to strengthen the reasoning of the lawsuit, particularly with a view toward appealing to violations of Article 6 of the European Convention on Human Rights (right to a fair trial and legal certainty).

Following the meeting, participants agreed to merge the efforts of the legal teams from Energy Club member companies and Juscutum experts to finalize the statement of claim. The document will be adjusted to account for procedural risks and potential consequences for formula-based pricing.

The next meeting of the working group, where the finalized draft will be presented, is scheduled for Friday, April 3, at 14:00.

Energy Club continues to unite market participants to establish transparent and fair rules of the game in Ukraine’s energy sector.

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