Ukrainian Court Decision is Consistent with the Decision of International Courts, All Cases Closed Against Burisma and Zlochevskyi

13 January 2017

Law enforcement agencies closed the case against Burisma and its owner Nikolay Zlochevskyi after the company paid almost UAH 6 billion to the budget.

International Energy Group Burisma with assets in Ukraine announces that all legal proceedings and pending criminal allegations against its President Nikolay Zlochevskyi and operating companies of Burisma Group are fully closed, as reported on the official website of Burisma Group.

“This decision is the result of many months of full cooperation between the Office of the General Prosecutor and the legal team representing the Burisma Group. The company took unprecedented steps within the Ukrainian business community to remove all allegations against the company’s activities and continue to provide the country with natural gas, following the principles of open cooperation and transparency. Burisma Group agreed that should an investigation determine that the Burisma Group owed outstanding taxes and/or fees that it would, without appeal, pay any and all outstanding taxes, fines and fees”, as reported on the company’s website.

Moreover, as a result of the investigation, Burisma agreed to pay UAH 180 millions of tax liabilities to the budget. Over the last two years alone, operating companies of Burisma Group, paid more than UAH 5. mln. in tax liabilities to the budgets of all levels. Burisma is one of the top taxpayers of Ukraine.

According to the Independent Director of Burisma Aleksander Kwasniewski, this decision to fully close all cases against Burisma and its owner Nikolay Zlochevskyi shows how far Ukraine has come in advancing democratic ideals, proving that politics does not affect court decisions.  “It is reassuring that the independent Ukrainian court managed to take the decision that is fully consistent with the decision made by the British court. For Ukraine, the decision on Nikolay Zlochevskyi and Ukraine’s largest gas producer Burisma will be also instrumental in making the country energy sufficient, since it will allow Burisma to increase domestic gas production as well as payments to the state budget. Especially today, Ukraine should be united over projects enhancing its defense capabilities and political independence. The country has already paid a high price with the revolution and its aftermath”, noted Independent Director of Burisma Aleksander Kwasniewski.

As reported earlier, the Pechersk District Court of Kiev obliged the Prosecutor General’s Office of Ukraine to close the case against Mr. Zlochevskyi and remove him from the wanted list. The PGO fulfilled the relevant court order. The Ukrainian court decision is fully consistent with the decision taken by the U.K. court. After considering Nikolay Zlocheskyi’s activities in Ukraine from 2002 to 2014, the British court ruled in favor of Nikolay Zlochevskyi and obliged the UK Serious Fraud Office (the SFO) to pay the defendant’s costs.

“The actions of the PGO and those of the Ukrainian court are clear evidence of Ukraine’s commitment to the rule of law and due process – twin pillars of democracy“, stressed former U.S. Deputy Assistant Attorney General Mr. John Buretta.

Mr. Zlochevskyi admitted that since all legal proceedings against Burisma Group are closed, it will allow the company to increase production volumes, the flow of foreign investments in Ukraine and duly pay all required tax liabilities to the budget.