Ukraine PM Shmygal files lawsuit in challenge to Naftogaz CEO removal order

Ukrainian Prime Minister Denys Shmygal has filed a lawsuit to challenge an order from the country's anti-corruption agency to terminate the contract of Yuriy Vitrenko as the CEO of state-owned Naftogaz Ukrayiny.

The lawsuit was filed to the Kyiv District Administrative Court.

"The court is deciding the issue of opening proceedings on this claim," the court said in a statement.

Shmygal has asked the court to declare the order from the National Agency on Corruption Prevention (NACP) to be unlawful, and to cancel the order, the court said.

The move comes two days after the NACP ordered the government to terminate Vitrenko's contract.

Shmygal had 10 days to respond to the order, but his filing the lawsuit now shows the government is strongly opposing it.

NACP alleged that the appointment of Vitrenko in late April -- after a short stint as acting energy minister – violated corruption prevention laws.

Vitrenko on June 15 dismissed the allegations from the NACP as biased and unlawful.

Clare Spottiswoode, the chair of Naftogaz's supervisory council, has sided with the NACP narrative and said on June 16 that it would be in the interests of both Naftogaz and Ukraine for Vitrenko to be dismissed. The final decision will be made by Shmygal, she said.

Gazprom action

The developments come days after Vitrenko instructed Naftogaz to start preparing documentation to file a lawsuit against Gazprom in an attempt to force the Russian gas giant to change its stance on pipeline access and European gas sales for supply via Ukraine.

Vitrenko has been especially vocal in further raising the stakes in its dispute with Gazprom to allow Central Asian gas to transit Ukraine on its way to Europe and for European traders to be able to book capacity in Ukraine for Russian gas imports.

He was already instrumental in spearheading Naftogaz's arbitration victory against Gazprom, which saw Naftogaz awarded a net $2.6 billion after high-profile rulings at the Stockholm court of arbitration.

A compromise agreement in December 2019 settled all outstanding legal disputes between Naftogaz and Gazprom, but Vitrenko has pledged to resume legal action once again.