Ukraine’s Economic Security Bureau investigating multi-million dollar tax evasion scheme
ESBU is investigating a case of tax evasion (Photo:ESBU’s press service)
The Economic Security Bureau of Ukraine is investigating a case of tax evasion by the management of a large oil refinery, the ESBU’s press service reported on Nov. 9.
According to them, ESBU agents, in cooperation with the SBU security service, are conducting searches at the facility.
The ESBU believes the tax evasion scheme also involves a number of companies involved in supplying fuel and lubricants, which are owned by one of the richest Ukrainian oligarchs.
According to the investigation, officials at these businesses are thought to have underestimated their tax liabilities from excise taxes in 2019-2022.
“In particular, they concealed and did not reflect financial and economic transactions in tax and accounting reports,” the ESBU said.
“According to the ESBU, this tax evasion may amount to more than UAH 700 million ($19.1 million).”
The ESBU added the agents are also checking information about possible regulatory violations committed in order to increase profits during fuel production. Agents will be taking fuel samples to determine whether these violations did occur.
Earlier on Nov. 7, the firms Motor Sich, Ukrnafta, Ukrtatnafta, AvtoKrAZ, and Zaporizhtransformator were transferred to state ownership, under terms permitted by martial law. The decision was undertaken by President Volodymyr Zelenskyy.
Privately-held shares in these firms have been transferred to the Ministry of Defense for the duration of martial law. According to Defense Minister Oleksii Reznikov, supervisory boards have been formed to appoint new management for the facilities.
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