Non-return of foreign exchange earnings: the ESBU discussed counteraction of economic offences during exports and recent legislative changes

Deputy Director of the Economic Security Bureau of Ukraine (ESBU), Andrii Pashchuk and Head of the ESBU Detectives Department, Oleksandr Tkachuk, met with Member of the Parliament of Ukraine, Volodymyr Tsabal, who was appointed Deputy Chair of the Temporary Investigative Commission (TIC) for examining potential violations of legislation related to the non-repatriation of foreign currency earnings to Ukraine.

The participants discussed future cooperation between ESBU and the newly established Temporary Commission of the Verkhovna Rada of Ukraine. According to MP Tsabal, TIC will focus primarily on identifying individuals who may be involved in the organization and commission of legal violations by foreign trade entities during cross-border transactions, assessing the extent of damage caused to the state, and developing legislative changes aimed at preventing such violations.

The meeting also covered current trends observed by ESBU specialists following the introduction of the "Export Security Regime" (ESR), which regulates the export of agricultural products and processed goods.

According to the ESBU analysts, the number of high-risk exporters has recently decreased.

"This is primarily due to the fact that, under current regulations, only VAT-registered entities are allowed to export, and all supply chains are now subject to verification before products leave Ukrainian territory. At the same time, business entities that are not registered as VAT payers are prohibited from engaging in exports during the ESR period. However, it is still too early to make a final assessment of the impact of this mechanism," noted Andrii Pashchuk.

He also emphasized that the Cabinet of Ministers' decision to introduce minimum allowable export prices for ESR commodities prevents the declaration of artificially low invoice values, which, in turn, eliminates the possibility of reducing the taxable base for export duties and corporate income tax.

In turn, Oleksandr Tkachuk, stated that over the past year, detectives from both the Central Office and Territorial Offices of the ESBU ensured the recovery of UAH 1.3 billion in damages from high-risk exporters as part of ongoing criminal proceedings.

As a reminder, based on ESBU materials, an agricultural exporter in Odesa region recently reimbursed UAH 158.3 million in unpaid taxes to the state budget. The criminal proceedings have been referred to the court with an indictment.