Ukraine’s anti-corruption agencies announced on Wednesday, Jan. 21, that they have uncovered a scheme to siphon public funds from the country’s renewable energy “green” tariff in Russian-occupied parts of Zaporizhzhia Oblast.

In a statement, the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialized Anti-Corruption Prosecutor’s Office (SAPO) said nine people have been named as suspects, including a former deputy head of the Office of the President, a former member of the supervisory board of Naftogaz, executives of energy companies, and a former commercial director of Zaporizhzhiaoblenergo.

Ukrainian media reports identify one senior official as Rostyslav Shurma, who was dismissed from Naftogaz’s supervisory board in December.

Investigators allege the scheme involved commercial solar power plants in areas under Russian occupation, which continued receiving state payments despite no longer supplying electricity to Ukraine’s grid. In 2019-2020, a former deputy of the Donetsk regional council and his brother took control of several renewable energy companies, building solar plants with a combined capacity of roughly 60 megawatts in Zaporizhzhia’s Vasylivka district. These companies signed contracts with the state enterprise Guaranteed Buyer to sell electricity under the green tariff, NABU stated.

After Russia’s full-scale invasion and the occupation of parts of the region, the solar plants were disconnected from Ukraine’s unified power system, damaged, and had their staff evacuated. Nevertheless, investigators say the companies submitted false reports of electricity production and technical readiness, including during complete blackouts, and funneled the payments through affiliated companies.

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The total alleged damage is estimated at 141.3 million hryvnias (about $3.7 million). The suspects face charges including large-scale embezzlement and money laundering. The pre-trial investigation is ongoing, and investigators say they are working to identify all those involved.