Who is who: how Weatherford Ukraine makes money on government tenders during war

What can you do with numerous lobbyists in government agencies, business connections in Russia and Belarus, and a director position in a private company in Ukraine?

That's right - make money on government tenders assigned to you, ignore the law and drag companies from aggressor countries here. This is exactly the story that recently surfaced in relation to the company Weatherford Ukraine LLC and its director Alexander Tertichenko. This is a classic example of how the interests of business and the needs of the state intertwine in favor of the aggressor.

Tenders to order and work for the aggressor

Having analyzed the winners of government tenders in the oil and gas sector of Ukraine, analysts noted that it is often the Weatherford Ukraine company that will win them. She won 102 tenders for a total of UAH 3.08 billion. The main customer is the state enterprise Ukrgasvydobuvannya, for which the company supplies specialized equipment and provides engineering services.

Despite the legal requirement from 2021, which stipulates that goods purchased with public funds must have at least 20% Ukrainian content, investigators claim that the majority of equipment supplied by Weatherford Ukraine is imported, and localization is limited only to assembly or installation in Ukraine. This formally meets the requirements of the law, but does not bring significant economic benefits to the country.

Another aspect is changes in tender requirements for specific companies. For example, during one of the Ukrnafta tenders, conditions were spelled out that actually excluded many Ukrainian manufacturers, leaving access only for Weatherford. Tender schemes that offer benefits only to a select few destroy economic prospects for the country. State funds are actually spent on imported goods without real benefit to the Ukrainian economy.

Thus, the company’s success is based not on the quality of products or services, but on pseudo-localization schemes, corrupt connections and lobbying by former employees who now occupy key positions in government agencies.

Success story or how to sit on two chairs

Despite the third year of Russia's full-scale invasion of Ukraine, Weatherford's parent company, whose representative in Ukraine is Weatherford Ukraine LLC, continues to operate successfully in Russia. Neither sanctions, nor the death of thousands of people, nor the fact that Weatherford’s main customer in Russia is the famous Rosneft of Sechin, a close ally of Putin, affect their business plans. The company concludes new contracts and creates jobs in Russia. War for Weatherford is not a challenge, but another opportunity for profit.

In Ukraine, despite the fact that the National Agency for the Prevention of Corruption (NAPC) included Weatherford in the list of international war sponsors, this also did not affect cooperation with such state-owned enterprises as Ukrgazvydobuvannya and Ukrnafta. They continue to sign million-dollar contracts with Weatherford Ukraine.

And here it is worth noting that simply by an incredible coincidence of circumstances, at different times, people worked at Weatherford who later went to work for state-owned companies, and Weatherford’s business went up.

"One's own to one's own after one's own"

So, meet Alexander Tertichenko, the current director of Weatherford Ukraine LLC, closely associated with the organization of Newfolk conferences, where the interests of Belarusian companies such as Fidmash and Belorusneft are actively promoted. Tertichenko's activities have repeatedly caused outrage among the oil and gas community, which accused him and conference organizer Andrei Zakrevsky of promoting the interests of Belarus, an ally of the aggressor. Despite this, Tertichenko continues to occupy a key position in Weatherford and is actively enriching himself at the expense of the state.

However, it is obvious that Tertichenko cannot act without support and command. An important figure associated with Weatherford's activities is Natalya Rudevich. For ten years (2010-2020) she held the positions of financial and general director of Weatherford Ukraine. After that, using the accumulated experience and connections, Rudevich moved to the position of Director for Oil and Gas Services at UkrGasVydobuvannya JSC, the largest state-owned gas production company in Ukraine.

And immediately after this, Weatherford Ukraine signed a series of lucrative contracts with this state-owned company worth more than UAH 490 million. Accident? Hardly. Throughout her tenure in government positions, Rudevich ensured Weatherford had access to the most attractive tenders for the supply of equipment and services.

She now holds the position of chief advisor to the director of oil and gas services at Ukrnafta JSC, which gives her even more leverage to lobby for Weatherford’s interests. Her influence not only lobbies private interests, but also shakes the foundations of the state economy, and her career is a striking example of how business interests can permeate government structures, where personal connections prevail over professional ethics.

What's more interesting is that Dmitry Solnyshkin, a Russian citizen who previously worked at Weatherford, is a key figure in this scheme. He was responsible for the markets of Poland, Ukraine, Georgia and the Baltic countries, and also worked for Burisma and Schlumberger, which continue to operate in Russia. By the way, NAPC also included Schlumberger in the list of international war sponsors through cooperation with Russian giants such as Gazprom and Rosneft.

Now Solnyshkin continues to oversee Weatherford Ukraine through his companies IPs Global FZCO and INTERPROJECTS SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ. And this does not concern either Solnyshkin’s partner in Ukraine, Tertichenko, or law enforcement officers, who must identify persons threatening national security. Solnyshkin is a vivid example of cooperation between business and the aggressor country.

Vitaly Melnik is another key player in this scheme. He was director of Weatherford Ukraine LLC from 2009 to 2016. Melnik also started a business in the field of oil and gas services, creating several companies, such as Poltava PBR LLC, Specialized Service Company LLC and NG Technology LLC. Before the full-scale invasion, these companies were a front that ensured the withdrawal of Weatherford's tender millions into cash. However, having Russian citizenship and fearing exposure, in 2022 Melnik transferred his business to his daughter Yulia Melnik-Dedovich. He himself, together with his partner Igor Stasiuk (former commercial director of Weatherford Ukraine), continued to provide cash withdrawal services through Stimtech LLC and Ukrburservice.

What's next?

Despite the efforts of the international community to impose sanctions against Russian companies, the Weatherford Ukraine case is a striking example of how, due to corrupt connections, these restrictions can be easily circumvented, how business interests associated with the aggressor can penetrate the public sector, manipulate tenders and remain unpunished even during war.

Pseudo-localization schemes, the involvement of dummies and ignoring national interests open a wide way for further penetration of companies from Russia and Belarus into strategic industries. What is most alarming is the silent connivance of law enforcement agencies, which allows such structures to continue making money from the war and government resources while the country is fighting for its existence.