The Bureau of Economic Security (BEB) of Ukraine has exposed two ferroalloy plants affiliated with a prominent Ukrainian oligarch for evading nearly 1.2 billion UAH in taxes during product exports.
According to a press release from the Bureau, it was determined that the enterprises exported ferroalloy products to Austria, Cyprus, and several other European countries over an extended period. When selling products to foreign buyers, officials at the plants deliberately undervalued the product, allowing them to evade substantial tax obligations.
The harm inflicted on the state has been verified by the Bureau's analysts.
As part of the criminal investigation, detectives also established that the mentioned plants exported about 90% of their produced goods. At the same time, the foreign currency earnings from these sales did not return to Ukraine. Specifically, the debt for the ferroalloy products sold to non-residents at one of the enterprises amounts to 1.1 billion UAH.
In total, only during the years 2022-2023, the plants exported products with an estimated value of $853 million.
Based on the orders of the investigative judge, BEB detectives are conducting searches at these enterprises to identify and seize remaining stocks of ferroalloy products, primary financial documentation, and other items that may be included in the criminal case as evidence of illegal activities.
A pre-trial investigation is underway regarding the signs of part 3 of article 212 of the Criminal Code of Ukraine "Tax evasion, fees (mandatory payments)."
The procedural guidance is carried out by prosecutors from the Office of the General Prosecutor.
The press release does not specify the ferroalloy enterprises; however, there are only two major ferroalloy plants operating in Ukraine – Zaporizhzhia Ferroalloy Plant (ZZF) and Nikopol Ferroalloy Plant (NZF), both part of the "Privat" group associated with businessman Ihor Kolomoyskyi.