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COURT APPROVES INZHUR ENERGY TO COMPLETE CONSTRUCTION OF POWER PLANT IN KYIV REGION. ARIO LAW FIRM AMONG LEGAL ADVISORS ON THE CASE

News, Projects

Criminal Law and White Collar Crime

29 May 2025

The Kyiv Court of Appeal partially upheld the complaint filed by Inzhur Energy against the ruling of the Kyievo-Sviatoshynskyi District Court of Kyiv Region, which had imposed a seizure on the land plot and prohibited the construction of an energy facility. The appellate decision now allows the company to resume building the power plant, which will contribute additional energy generation amid Russia’s ongoing energy war against Ukraine.

Legal support in the case was provided by the teams of ARIO Law Firm, LCF Law Group, and attorney Olena Hrytsaienko.

Case Background

In 2018, our client purchased a land plot in Kyiv Region. Since then, a detailed territory plan was approved, the land’s designated use was changed to “trade facilities,” and measures were taken to relocate or protect utility networks, including reinforcing a nearby gas pipeline. Construction of the power plant on the plot began in 2024.

However, at the prosecutor’s request, the Kyievo-Sviatoshynskyi District Court imposed a seizure on the land and banned construction works. The prosecutor’s position was based on a surveyor’s conclusion that the construction was taking place within the protective zone of a main gas pipeline.

Arguments of the Parties

It is important to note that the area adjacent to the plot already hosts service stations, warehouses, car dealerships, and other commercial facilities with constant heavy traffic, indicating that the power plant construction does not encroach on the protective zone.

“We welcome the appellate court’s decision protecting the investor’s rights. The court confirmed that the construction of the power plant complies with state building codes and the requirements of the Law of Ukraine ‘On Pipeline Transport’,” commented ARIO Law Firm partner Yevhen Hrushovets, one of the attorneys representing the case.

According to him, the alleged crime against the client is not grave, and from a legal standpoint, there are no victims in this case — a position also confirmed by the Kyiv Court of Appeal.

“Residents of nearby townhouses, who attempted to gain ‘victim’ status, even tried to challenge the first-instance judge for not notifying them of the hearing, despite having no legal standing as they are not parties to the proceedings,” Hrushovets emphasized. “Overall, the review of the motion to lift the seizure at the first instance, in our opinion, was artificially delayed — sometimes due to prosecutorial actions, sometimes due to judges’ recusals, and sometimes due to actions of the so-called ‘victims.’ The order to impose the seizure was issued in one day, whereas the motion to lift it took nearly two months to consider.”

Furthermore, the ARIO team filed a criminal complaint against the surveyor who, according to the defense, submitted false information regarding the gas pipeline’s location. A criminal proceeding under Article 358 of the Criminal Code of Ukraine (“Forgery of documents, seals, stamps, and forms, sale or use of forged documents”) has already been initiated.

“Interestingly, we requested the prosecutor’s office to inspect the plot to establish the precise location of the pipeline. However, this was never conducted. We were told that prosecutors had instructed the investigator accordingly, but the investigator informed us that he would not carry out the inspection because all case materials are held by the prosecutor’s office. Such is the paradox,” said the ARIO Law Firm partner.

Yevhen Hrushovets also stressed that, amid ongoing missile attacks by Russia targeting Ukraine’s energy infrastructure, prohibiting the construction of additional generation capacity raises serious concerns.

The power plant being built by Inzhur Energy is part of the presidential program to develop small-scale generation and has a contract with NPC “Ukrenergo.”

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