The SBU exposed and blocked a large-scale scheme of non-observed economic activity and tax fraud in the food market.

It was established that during 2019-2020, management of several commercial entities illegally sold products for cash without relevant reports. The offenders used several illegal schemes to legalize transactions and mislead fiscal and regulatory authorities. Thus, they evaded taxes and deliberately formed a tax credit when exporting products.

According to preliminary estimates, they sold 124,000 tons of tainted sunflower oil for more than UAH 2.3 billion (USD 81 million).

Searches within the initiated criminal proceedings took place at storage and production facilities, offices and residences of the offenders in three Ukrainian regions. The law enforcement seized source accounting documents and stamps with evidence of fraud. In addition to that, 12,000 tons of products worth over UAH 300 million (USD 10.6 million) were found.

The investigation for evasion of taxes is ongoing.

The operation was conducted by the SBU Main Directorate on Economic Counterintelligence Protection of State Interests jointly with the SFS Main Investigative Directorate of the Large Taxpayers Office under legal supervision of the Prosecutor General’s Office. The SBU Offices in Kirovohrad, Mykolaiv and Odesa regions were also involved.