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Supreme Court finally recognises state's ownership of Medvudchuk pipe

For many years, the Samara-Western Direction pipeline was used by the Russian company Transnefteprodukt. Then, part of the pipeline was taken over by Prykarpatzakhidtrans, a company associated with Medvedchuk. 

Supreme Court finally recognises state's ownership of Medvudchuk pipe
Viktor Medvedchuk
Photo: Lb.ua

The Supreme Court has finally recognised the state's ownership of the Ukrainian part of the Samara-Western Direction oil pipeline (part of which is better known as the Medvedchuk pipe). This was announced by the head of the State Property Fund, Vitaliy Koval.

The oil pipeline was built during the Soviet era and was supposed to become state property after Ukraine's independence. However, this did not happen. For many years, it was used by the Russian company Transnefteprodukt.

The State Property Fund has been trying to return this asset to state ownership since 2011.

In 2017, the NABU and the Specialised Anti-Corruption Prosecutor's Office (SAPO) launched an investigation into the circumstances of the transfer of the pipeline ownership.

In early 2021, the NABU and the SAPO served a notice of suspicion to an expert whose findings led to the transfer of a part of the Samara-Western Direction oil pipeline to the Medvedchuk-affiliated company Prykarpatzakhidtrans.

Following the investigation, the High Anti-Corruption Court seized the asset. Since 2021, it has been managed by Ukrtransnafta.

The State Property Fund, simultaneously with the investigation by law enforcement agencies, made another attempt to return the asset to state ownership. In 2021, the SPFU filed a lawsuit with the Commercial Court of Zhytomyr Region, in which it requested that the state recognise the ownership of the pipeline. In June 2023, the court sided with the Fund. And yesterday, the Supreme Court dismissed the cassation appeal. Thus, Ukraine has defended its right to this property.

The state's ownership of the pipeline is currently being registered. 

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