The Ukrainian part of the «Samara-West Direction» oil pipeline has been returned to state ownership

The Supreme Court has finally recognized Ukraine's ownership of a part of the «Samara-Western Direction» oil product pipeline. This asset is commonly known as the Medvedchuk Pipe.

"The long-running court case has been put to rest - an important infrastructure facility for energy security has been returned. This is 800 kilometers of oil pipeline running through six regions of Ukraine. The State Property Fund is committed to protecting the interests of the state. After all, State Property Fund is ours, not anyone else's," said Vitaliy Koval, Chairmanof the Fund.

The oil pipeline was built in the Soviet era and was supposed to become state ownership after Ukraine declared its 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 2011, the Economic Court of Rivne region, following a claim by the Prosecutor General's Office, recognized the ownership of the Ukrainian part of the «Samara-Western Direction» oil pipeline by Ukraine, represented by the Fund. However, in 2017, the court changed its decision and dismissed the claim of the Prosecutor General's Office in the interests of the Fund.

Also, in 2017, the NABU and the Specialized Anti-Corruption Prosecutor's Office launched an investigation into the circumstances of the transfer of ownership of the pipeline. 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 law enforcement investigation, made another attempt to return the asset to state ownership. In 2021, the Fundfiled a lawsuit with the Commercial Court of Zhytomyr Region, in which it requested that the state recognize the ownership of the pipeline. In June 2023, the court sided with the Fund.

On January 31, 2024, the Supreme Court of the Commercial Court of Cassation upheld the decision. Thus, Ukraine defended its right to this property.

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