Detectives of the Economic Security Bureau of Ukraine exposed officials of VSMPO Titan of Ukraine LLC in tax evasion on a particularly large scale.

The beneficial owner of this company is a citizen of the russian federation oligarch Mikhail Shelkov who is close to the Kremlin and is subject to NSDC sanctions.

The investigation established that the company's officials unreasonably generated expenses in excess of UAH 155 million in relations with other business entities. As a result income tax and value added tax in the amount of almost UAH 40 million were not paid to the budget.

In addition, it was found that in the period 2019-2022, the director of VSMPO Titan Ukraine LLC tried to conceal the company's assets that were on the company's balance sheet.

Under the sale and purchase agreement the equipment and production facilities of the titanium pipe plant were sold to another legal entity. Subsequently, the director leased the same special machines, furnaces, computer equipment, electrical equipment and other property and used it in the production activities of VSMPO Titan Ukraine LLC.

Based on an investigating judge's ruling the ESBU seized the property and equipment.

The pre-trial investigation in the criminal proceeding on the grounds of a criminal offense under Part 3 of Article 212 of the Criminal Code of Ukraine (tax evasion) is being conducted by detectives of the Economic Security Bureau of Ukraine under the procedural supervision of prosecutors of the Prosecutor General's Office.

Pursuant to the Decree of the President of Ukraine No. 727/2022 dated October 19, 2022, the decision of the National Security and Defense Council of Ukraine dated October 19, 2022 "On the Application and Amendments to Personal Special Economic and Other Restrictive Measures (Sanctions)" was put into effect, which provides for restrictive measures against M. Shelkov.

As previously reported, the detectives of the ESBU secured the recovery of the assets of Demurinsky Mining and Processing Plant LLC, 100% of the share in the authorized capital of VSMPO Titan Ukraine LLC and the property of this enterprise - real estate, cars and cash - for the state's revenue. https://esbu.gov.ua/en/news/titanium-assets-and-property-of-a-russian-oligarch-worth-2-billion-were-charged-to-the-income-of-ukraine