"Criminal Prosecution of Energy Market Participants" – Key Takeaways from Tetiana Lysovets' Webinar

Key Takeaways from the Closed Meeting of the Legal Committee of the Solar Energy Association of Ukraine, presented by Tetiana Lysovets:

🔹 Criminal proceedings against an energy company may be initiated not only as a result of tax audits. They may also arise from issues related to customs clearance of equipment, public procurement, relationships with counterparties, operations in temporarily occupied territories, and other risk factors.

🔹 The most common criminal law risks for energy market participants involve allegations of tax evasion, official negligence, official forgery, misappropriation of assets, as well as offences against the foundations of Ukraine's national security.

🔹 The first hours following the initiation of criminal proceedings are often decisive. Businesses should have a clear response strategy in place for searches, interrogations, temporary access to documents, and asset seizures.

🔹 Criminal liability may extend beyond the company's CEO to business owners, CFOs, chief accountants, and other executives, depending on the specific circumstances of the case.

🔹 A timely legal audit of internal processes, corporate documentation, and tax risks can significantly reduce the likelihood of criminal prosecution.

The meeting took place on 9 July and focused on "Criminal Prosecution of Energy Market Participants."

The meeting was moderated by Ivan Balytskyi, Partner at Sokolovskyi & Partners and Chair of the Legal Committee of the Solar Energy Association of Ukraine.

The keynote speaker was Tetiana Lysovets, Senior Partner at Sokolovskyi & Partners, Vice President of the Ukrainian Bar Association, and Attorney-at-Law.

💬 "The initiation of criminal proceedings does not, in itself, mean that a company or its officers are guilty. However, the very first decisions made by management, in-house counsel, and external lawyers often determine whether business risks can be effectively mitigated. That is why companies should prepare for such situations well before they arise," Tetiana Lysovets noted.

We thank all participants for the engaging professional discussion and insightful practical questions.