Electricity for the occupiers: how Sevastopolenergo worked for the Russian army

While Ukraine was losing control of Crimea, Sevastopol's power grids were actually working for the Russian military machine - under the cover of a Ukrainian company. An extensive scheme with "clones" of companies and fictitious owners provided electricity to the Russian navy and security forces for years, disguising the business as legal.

The Center for Investigative Journalism has told how the ownership structure of the company was changed.

Energy as a resource of war

This story is closely related to the case of VS Energy, which is being considered by the High Anti-Corruption Court of Ukraine. At the same time, it is the activities of Sevastopolenergo that provide additional grounds for sanctions and confiscation of the assets of the so-called Luzhniki group.

We are talking about influential Russian businessmen - Alexander Babakov, Yevgeny Giner and Mikhail Voevodin. The Ukrainian authorities consider them to be the ultimate beneficiaries of VS Energy.

Energy infrastructure in times of war is a critical resource that ensures the functioning of the army, navy and repressive bodies. In the case of Sevastopol, this system actually worked in favor of the occupiers.

How the ownership structure was changed

Back in 2001, stakes in several Ukrainian regional power distribution companies, including Sevastopoloblenergo, were sold to a Slovak company. A year later, they came under the control of the Dutch VS Energy International N.V., which was run by people connected to the Luzhniki family.

After the occupation of Crimea, the company's legal address was first moved to Kherson, and then to Vyshneve near Kyiv. This made it possible to formally circumvent EU and US sanctions that prohibited activities in the Crimean energy sector.

To hide the connection with the Russian owners, nominees with EU citizenship were registered as beneficiaries.

A double game: Ukraine and Russia

In 2015, two structures existed simultaneously: the Ukrainian branch of Sevastopolenergo and its "mirror" in the Russian jurisdiction. Both were headed by Igor Duravkin. This scheme was used to manage assets, collect payments and conclude contracts with Russian law enforcement agencies.

The investigation found that the company provided electricity to Rosgvardia units, military units and occupation law enforcement agencies. In fact, it was no longer a commercial activity, but support for the military and repressive machine of the Russian Federation.

New companies and financial flows

In 2016, a company called Sevenergozbut was established in Sevastopol, which was directly registered to Yevhen Giner. It took control of the financial flows, while Sevastopolenergo remained responsible for the technical part.

Subsequently, the owners and managers of the companies changed, probably to avoid sanctions. In 2024, Sevastopolenergo got a new founder from Moscow, and Sevenergozbut came under the control of another structure linked to Rosseti.

However, instead of improving the quality of services, the new owners invested in projects related to infrastructure maintenance for Russian elites, while local residents continued to suffer from power outages.

Response of Ukrainian law enforcement

For a long time, Yevhen Hiner 's activities in the occupied Crimea were ignored. Moreover, in 2016, he was allowed to buy a Ukrainian bank, through which, according to the investigation, he could have withdrawn funds abroad.

It was only in 2023 that the State Bureau of Investigation notified Hiner of suspicion. He is considered to be the organizer of a scheme to supply electricity to the occupation structures.

The other defendants in the case are Ihor Duravkin, Vladyslav Akimovych, Ruslan Boryahin, and Viktor Shulzhenko. The only one to stand trial is top manager Volodymyr Myrhorodskyi. He pleaded guilty and received a fine of 510 thousand hryvnias without confiscation of property.

On February 16, 2026, the Ivano-Frankivsk City Court authorized a special pre-trial investigation against Giner and four other managers. They are suspected of financing actions aimed at changing the state borders of Ukraine.

Also, while Ukraine is fighting for the de-occupation of Crimea, some businesses continued to operate on the peninsula under Russian rules, paying taxes to the budget of the aggressor country. The court approved an agreement with one of the participants in the scheme, who agreed to cooperate with the investigation.

Анна Бальчінос