ESBU Director: UAH 244 million tax evasion scheme by companies linked to sanctioned russian citizen exposed

 Oleksandr Tsyvinskyi, Director of the Economic Security Bureau of Ukraine, announced on his Telegram channel the exposure of a large-scale tax evasion scheme by enterprises associated with a sanctioned citizen of the russian federation. According to the investigation, the illegal activity resulted in the state budget losing nearly UAH 244 million in VAT.

The case involves five companies that produced bitumen, asphalt concrete mixes, and other materials for road construction.

"Some people seem to have decided that along with asphalt, they could lay a separate lane for a tax scheme worth nearly UAH 244 million," the ESBU Director noted.

According to the investigation, the company officials had for years been generating a fictitious input tax credit through transactions with transit enterprises and entities showing signs of fictitiousness, although actual supply of part of the products never took place. This allowed them to reduce their tax liabilities to the budget.

"There is also an important detail. These enterprises are linked to a sanctioned citizen of the russian federation. While russia strikes Ukraine with missiles, individuals associated with it are trying to profit from Ukrainian roads while simultaneously dodging taxes. UAH 244 million is not about accounting. These are funds that should have worked for the country's recovery, community support, and security," emphasized Oleksandr Tsyvinskyi.

ESBU detectives have already notified the director of one of the enterprises of suspicion under Part 3 of Article 212 of the Criminal Code of Ukraine (tax evasion on an especially large scale).

The pretrial investigation is ongoing. ESBU detectives identify all individuals involved in the operation of the scheme and are taking measures to ensure the reimbursement of losses caused to the state budget.

According to Article 62 of the Constitution of Ukraine, a person is presumed innocent of committing a crime until their guilt is proven in accordance with the law and established by a court verdict of guilty.