Exclusive: How Andriy Derkach’s Activities Uncovered Joe Biden’s Connection to a Corrupt Scheme of Reverse Gas Supplies in Ukraine

Guest post by Simona Mangiante Papadopoulos

Despite active opposition from Democrats, the scandal surrounding corruption schemes involving the Biden family is growing ever larger. With Biden Sr.’s easy hand, key authorities – the FBI, the DOJ, the IRS and U.S. diplomatic missions abroad – have been involved in the scandal, hiding evidence and slowing down any investigations into the current president and his son over the past five years.

At the center of an investigation by Republicans on two House committees that could end with Biden’s impeachment is the current U.S. President Joseph Biden (the former Vice President under Barack Obama), members of his family (especially son Hunter Biden and brother James Biden) and his inner circle, in particular, Amos Hochstein, Antony Blinken, Marie Jovanovitch, George Kent and John Kerry. And the country where international corruption in Biden’s performance flourished to the greatest extent can deservedly be Ukraine, which was in Joe Biden’s area of responsibility under President Barack Obama.

One of the episodes concerning Biden’s possible money-making schemes in Ukraine is Ukraine’s conversion to reverse supplies of natural gas. The evidence in this scheme was made public by perhaps Biden’s main opponent outside the United States, Ukrainian politician Andriy Derkach, who also introduced the world to such crimes as the Bidens’ shady earnings and influence peddling to protect the interests of Burisma Holdings, the plundering of international technical assistance by grant organizations in Ukraine with the tacit approval of the U.S. Democratic top brass and its leader, NABU’s interference in the 2016 presidential election on Hillary Clinton’s side, and the accountability of law enforcement agencies in Ukraine to officers of the U.S. Embassy in Ukraine.

Let’s tell the story of the reversal in more detail. During the period of complication in relations between Ukraine and the Russian Federation after the annexation of Crimea and fighting in the east of Ukraine (in the so-called LPR and DPR), it was international organizations and the United States that determined the vector of development of the Ukrainian energy sector – to “energy independence” from Russia and integration into the European energy system. This transition implied the purchase of energy carriers at European spot prices and regulation of the domestic market in terms of pricing. These changes led to an active increase in gas, electricity and heating tariffs for industry and households, which has not stopped until now.

The two key players in this industry were and still are the National Commission for State Regulation of Energy and Public Utilities, which influenced only the pricing of domestic market tariffs, and PJV Naftogaz of Ukraine, the state monopoly and Ukraine’s largest and most profitable company. For the management of PJV Naftogaz of Ukraine, in addition to its immediate head Andriy Kobolev (many media outlets wrote about his close ties to the United States and even his American citizenship), the Supervisory Board of the company included Amos Hochstein, an adviser to U.S. Vice President Joseph Biden on energy issues. Hochstein held this position until 2021, and is now appointed as Biden’s White House advisor.

It is Amos Hochstein that the media call the architect of the corrupt scheme that involved the so-called reverse of European gas to Ukraine. And it was to control its implementation by Kobolev that Amos Hochstein was appointed to the Supervisory Board of Naftohaz of Ukraine.

The Amos Hochstein-Andriy Kobolev nexus ensured the “reverse gas supply scheme” during 2015-2020. As part of this scheme, Ukraine, having officially refused to purchase Russian gas, imitated the search for new supplier countries. The population read news about the transition to “reverse supplies” of gas from Europe, but in reality Ukraine bought the same Russian gas, although it paid for it to new companies and with due regard for the financial interests of all those involved.

To physically organize corruption on the reverse route, several proxy firms were created. An example is the company “ERU Trading”, which in 2015 alone purchased more than 420 million m3 of “European” gas from the Slovakian division of ENGIE and resold it to Ukrainian industrial enterprises. The funds received as a result of such a scheme were withdrawn to offshore companies.

In particular, it was Andriy Derkach who showed during the press conference in Kyiv that only on two episodes from July 2016 to July 2017, 348 and 274 million hryvnias were withdrawn to the account of ERU Management Services LLC, i.e. in total – more than 620 million hryvnias. According to calculations made public in Ukraine, Kobolev’s team managed to withdraw $50 from the Ukrainian budget for each 1,000 m3 of gas on such supplies, which totaled $1.5 billion.

At the same time, Ukraine has never denied that the scheme was organized thanks to the participation of Amos Hochstein and the patronage of Joe Biden. “The reverse from Slovakia in 2014 was made by Joe Biden,” the authoritative Ukrainian weekly Liga quoted the trader as saying.

Today, the media are increasingly talking about the synchronization of law enforcement actions in Ukraine and the United States, further attempts to hide or destroy everything related to the cases of Naftogaz of Ukraine, Burisma, USAID grantees, and the fact that the authorities are trying to get possible witnesses to Biden’s international corruption in Ukraine out of harm’s way. In the last six months alone, three cases involving key witnesses to Biden’s corruption schemes have been closed in Ukraine (in the Burisma case), and a fourth case – against Andriy Kobolev, the head of Naftogaz of Ukraine, who is the executor of Amos Hochstein’s billion-dollar scheme to “reverse European gas” to Ukraine – is close to being completely dismantled.

In the past, the US Democratic top brass traditionally defended itself against Derkach’s accusations, calling them “disinformation and Russian propaganda.” But what to do now that his evidence is being corroborated in official investigative documents in the U.S. itself? Perhaps it’s time to invite him to the US presidential impeachment hearings and get all the first-hand information about Biden’s possible crimes?

The full version of the material dedicated to the investigations of Andriy Derkach and Joe Biden’s corruption crimes in Ukraine can be found here.

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