Speaking on "Esimene stuudio" the day the report was issued, Durejko refrained from blaming anyone for identified shortcomings but noted that losses from hedging transactions might be recoverable through liability insurance.

He stated: "The special audit report highlights this [responsibility aspect] from a duty of care perspective."

"The legal aspect to this responsibility has not been analyzed yet. The company also holds liability insurance, and this is somewhere we could potentially recover part of this money from," he said.

Durejko clarified that pursuing an insurance claim requires identifying accountable individuals. He added: "It is unlikely that the money will be claimed from them; instead, it will go to the insurer in any case."

The audit report cited risks to the distribution network's operation, which Durejko said had been mitigated by restoring critical assets, expertise, and ensuring legal compliance.

He admitted failure to meet environmental permit standards could lead to shale oil plant closures. Eesti Energia plans to challenge "unreasonable" requirements due to the lengthy improvement process.

Durejko questioned the high costs of phasing out oil shale, arguing that idle power plants requiring millions in investments may not justify the expense. He suggested legal options could help manage these challenges.

Since April 2023, Durejko and the management board have worked on issues highlighted in the report, focusing on restructuring strategies, client-centered solutions, and addressing environmental challenges, including reducing emissions at the Enefit 140 oil plant and older oil shale units.

He acknowledged that despite significant investments, the Enefit 140 plant struggled to meet strict 2022 emission limits but came close.

On emissions standards, Durejko said: "We have not utilized all the opportunities provided by the law to address these standards."

He added: "This does not mean we want to pollute more; rather, the question is whether it is possible to meet these standards with the equipment we have."

The audit report by law firm Sorainen and accountancy firm Grant Thornton highlighted major issues, including €176 million in losses from unfavorable liquid fuel hedging transactions during the audit period.

Severe environmental violations at subsidiary Enefit Power AS were also noted, including exceeding pollutant limits and inaccurate reporting, which risk fines, reputational damage, and even criminal proceedings, potentially threatening the shale oil sector.

Eesti Energia supervisory board chair Anne Mere remarked that Thursday's audit yielded no new information.

Just ahead of the report's release to the public, Finance Minister Jürgen Ligi (Reform) had downplayed much of the above, mainly pointing to a previous composition of Eesti Energia's management board and supervisory board in terms of the timeline to the problems.

The Ministry of Finance had commissioned the audit report back in April.

--

Follow ERR News on Facebook and Twitter and never miss an update!