Novinsky’s gas companies may be launched in Ukraine

16 May 22:14

The Ministry of Economy of Ukraine supports the resumption of operations of Smart Holding’s gas production companies, which were suspended due to sanctions imposed on the company’s shareholder Vadym Novynskyi. This was stated by Yaroslava Maksymenko, Director of the Property Policy and Sanctions Department of the Ministry of Economy, during a roundtable discussion “Ukrainian subsoil under sanctions and arrests: challenges, conclusions, future,” "Komersant Ukrainian" reports.

According to her, these enterprises, located in Poltava and Kharkiv regions, played a significant role in ensuring the country’s energy security, producing more than 1 million cubic meters of gas per day before the outbreak of a full-scale war.

Jaroslawa Maksymenko noted that Ukrainian companies should work in the interests of the state, even if their ultimate beneficiaries are under sanctions. She emphasized that the Ministry has already prepared relevant legislative changes to address this situation.

In his turn, Ivan Gerasymovych, CEO of Smart Holding, emphasized that sanctions should be directed against the aggressor state and not harm the Ukrainian economy. He drew attention to the fact that Ukraine is forced to import Russian gas from Hungary and Slovakia, while its own gas production facilities are idle.

The sanctions are aimed at depriving the aggressor state, the Russian Federation, of resources for the war in Ukraine. Is that right? Anything that deprives them of resources is a good thing. If the sanctions are applied in such a way that they deprive their own state of resources, then it is necessary to find a solution that would level the situation,” Gerasymovych said.

Earlier, in January 2025, one of the largest private gas producers, Regal Petroleum Corporation Limited, a representative office of Enwell Energy, a 100% owned British company operating in Poltava region, was suspended due to the termination of three special permits.

Smart Energy Group, a part of the Smart Holding investment group, implements projects for the exploration and commercial development of hydrocarbon deposits and was one of the five largest private gas producers in Ukraine.

The shutdown of these companies led to significant economic losses for the state. According to Smart Energy, during the heating season of 2024-2025, the company lost 58 million cubic meters of gas and UAH 456 million in tax revenues due to the blocking of the industries. In addition, the company was forced to suspend its planned investments in gas production worth UAH 1.14 billion.

The Ministry of Economy, together with other state authorities, is working on amendments to the legislation that will allow the gas production companies to resume operations, while ensuring that the sanctioned persons do not have any influence on their activities.

Why Vadym Novynskyi was sanctioned

Sanctions were imposed on Vadym Novynskyi, a former member of parliament and businessman, by a decision of the National Security and Defense Council of Ukraine (NSDC) in December 2022. The official grounds for the restrictive measures are ties to Russia and a threat to Ukraine’s national security.

The main reasons for the sanctions:

Suspicion of financing the aggressor state – Novynskyi is accused of allegedly supporting the Russian economy or related entities through his business assets.
Church influence – Novinsky is a well-known patron of the Ukrainian Orthodox Church of the Moscow Patriarchate. The authorities see this as an attempt by Russia to influence Ukrainian society through religious institutions.
Companies controlled by Novynskyi – assets associated with Novynskyi, including the gas production group Smart Energy, were also sanctioned. This decision paralyzed the work of some companies.
Attempted evasion – The SBU reported that Novinsky allegedly tried to evade the sanctions by transferring assets to trusts or controlled entities.

The sanctions include asset freezes, trade restrictions and other economic bans. Mr. Novinsky still denies the charges and calls the sanctions politically motivated. He announced his retirement from politics in 2022 and subsequently left Ukraine.

What sanctions were imposed on Novynskyi?

The restrictions against Vadym Novynskyi were enacted by President of Ukraine Volodymyr Zelenskyy in his Decree No. 820/2022. The list of sanctions, according to this decision, covers the full range of restrictions often applied to individuals in the framework of national security. Here are the main ones:

Asset freeze. A ban on the use, disposal and management of property. This applies to both Novynskyi’s personal assets and corporate rights in companies owned or controlled by him directly or indirectly.
Restrictions on trading operations. It is prohibited to conduct any financial transactions with the assets of the sanctioned person, including the purchase and sale of corporate rights, shares, and stakes.
Suspension of economic and financial obligations. Banks and other financial institutions are prohibited from executing any payment orders or other financial instructions in favor of Novinsky.
Revocation or suspension of licenses and other permits. This may apply to licenses for gas production and other business activities.
Prohibition on the transfer of technology and intellectual property rights.
Prohibition on the withdrawal of capital from Ukraine.
Deprivation of state awards and military ranks (optional). This item was mentioned in the context of certain individuals on the sanctions list, but there is no official confirmation of this item specifically for Novinsky.

What you need to know about Smart Holding

Smart Holding is one of the largest investment and industrial groups in Ukraine, established in 2006. Before the sanctions were imposed, it was associated with businessman and former MP Vadym Novynskyi, who was considered the actual owner and beneficiary of the group.

Full name: Smart Holding (Group)
Year of foundation: 2006
Office: Kyiv
Main areas of activity: metallurgy and mining, energy (including gas production), construction and development, agriculture, financial investments.