Tax evasion scheme exposed at two ferroalloy plants linked to oligarch Kolomoisky

Source: BEB

The Bureau of Economic Security (BEB) said on Thursday it has uncovered tax evasion schemes used by two Ukrainian ferroalloy plants linked to prominent oligarch Ihor Kolomoisky. The total amount of unpaid taxes on theirs exports is estimated at nearly 1.2 billion hryvnias.

The investigation found that these plants have used transfer mispricing tricks while exporting ferroalloy products to Austria, Cyprus, and other European countries, which allowed them to avoid taxes.

As some 90% of their production was exported, a great share of their revenue went unaccounted and never sent back to Ukraine. One of these businesses amassed a debt of 1.1 billion hryvnias for unreturned funds from exported ferroalloy products.

BEB estimated that the plants exported raw materials valued at some $853 million in 2022-2023.

The agency detectives are conducting searches and seizing remaining goods and evidence for the case.

The investigation is proceeding under Part 3, Article 212 of the Criminal Code of Ukraine, which pertains to “Evasion of Taxes and Duties.”