Oligarch Butkevych received a highly profitable sand mining site without a tender

Oligarch Butkevych received a highly profitable sand mining site without a tender

The special permit was granted in the summer of 2022 without an auction. According to our calculations, this is the 13th valid special permit in the arsenal of the founder of the ATB Corporation.

The company LLC "General Distribution" holds a special permit for geological exploration of the sand deposits of the Zherevetska-2 site in the Zhytomyr region.

The ultimate beneficial owner of the company is the founder of ATB Corporation and the BGV Investment Management Group, Hennadiy Butkevych (through the Cypriot B.V. Eterneti Holdings Limited). Although the special permit was obtained back in the summer of 2022, it was not announced to the general public by either the media or the BGV Group.

General Distribution paid 20,039 UAH for the special permit and received it without an auction – as the right to use a site with mineral deposits of local importance (NADRA.INFO reported that in the same way, PJSC "MHP" Yuriy Kosyuk entered the sand extraction business, paying about 810,000 UAH for plot No.1 of the Lukashivske deposit without an auction).

With the application for a special permit, Hennadiy Butkevych’s company applied to the State Service of Geology and Subsoil of Ukraine back in August 2021. In November 2021, the State Geology Agency announced the List of Local Importance Subsoil Areas offered for special mining permits, including Zherevetska-2. Since no one else applied for this plot, it was given to General Distribution without bidding at the starting price (Order of the State Geology Agency No. 995 dated December 23, 2021; according to YouControl, the special permit was actually issued on August 18, 2022). The validity period of the granted special permit is until 2025.

The special permit for the Zherevetska-2 sand site is one of 13 special permits controlled by Hennadiy Butkevych (according to YouControl):

LLC "General Distribution" – the aforementioned special permit No. 5414 for geological exploration of the Zherevetska-2 sand site;

LLC "Granite Quarry" – No. 2990 for the extraction of porphyritic granite from the Zherevske deposit (NADRA.INFO wrote about the launch of a crushed stone plant);

LLC "Ukrainian Supply Group" – No. 6367 for the extraction of graphite ore from the Zavallivske deposit (Zarichna site);

LLC "Ukrnaftogazrozvidka" – No. 5038, geological exploration with pilot industrial development (GPD) of oil and gas at the Bazaliivska site;

LLC "Naftogazenerhoprom" – No. 4760, GPD of shale gas areas, at the Murafinska site;

LLC "Kharkivenerhoprom" – No. 4722, GPD of shale gas areas, at the Western Gutska site;

LLC "Vostok-Energy Resource" – No. 4701, GPD with subsequent extraction of oil, gas, and condensate at the Novosofiivska site;

PJSC "VNK ’Ukrnaftinvest’" (2 special permits) – No. 2521, GPD with subsequent extraction of oil and gas, Bilolisky block; No. 2522, GPD with subsequent extraction of oil and gas, Alibeyske-Trapivske area;

LLC "Rud Investium" – No. 5074, GPD of molybdenum ores, Chervona site;

LLC "Perzhanska Mining Company" – No. 6383, extraction of beryllium, genthelvinite, and zinc ores;

LLC "Development of Pobuzy" – No. 6345, extraction of graphite from the Balakhivske deposit;

LLC "Titan-Apatite Group" – No. 4998, GPD of apatite-ilmenite ores, Yurivska site.

In 2021, the special permit holders included LLC "Atomic Energy Systems of Ukraine" (AESU) and LLC "Ukrgazdob" owned by Hennadiy Butkevych. The granting of special permits to both companies was canceled by the courts. Since the fall of 2022, AESU has been exploring the prospects of concluding a product-sharing agreement on uranium ore deposits.

Source: nadra.info