The SSU jointly with the Bureau of Economic Security have exposed a criminal scheme of stealing funds in the Ukrainian grain export.

Over 10 high-ranking officials are involved in the fraud, including the deputy head of one of the departments of the State Customs Service and top officials of Odesa Customs.

Fraudsters established a large-scale mechanism of evading taxes in export of Ukrainian grain. As a result, the state lost hundreds of millions of UAH.

For the scheme, its participants involved over 370 ‘shell’ companies.

Through these firms, the dealers massively bought wheat from private farmers, agricultural enterprises and large agricultural holdings.

To make the trade chains confusing and avoid paying mandatory payments to the budget, merchants transferred the goods from one ‘shell’ company to another. After that, they sold the grain to exporters for sale abroad.

The Bureau of Economic Security detected the facts of using risky enterprises in the export procedures in advance and warned the State Customs Service in writing.

However, the customs officials ignored these warnings and allowed the sale of over 1 million tons of grain products to clients abroad.

The wheat was exported through the grain terminals in Odesa, Black Sea and Pivdennyi ports.

During the 30 searches in the administrative premises of the central office of the State Customs Service, in the ports and at the suspects’ homes, the law enforcement uncovered draft records, documents and mobile phones with evidence of the fraud.

The criminal proceeding was opened under the Article 364.2 of the CCU (abuse of power or official position). The organizers of the fraud will be served notices of suspicion and court is to choose a measure of restraint.

The investigation is ongoing to establish all the circumstances of the offence, determine the losses to the state budget and bring the culprits to justice.

The crime was exposed under the procedural supervision of the Prosecutor General’s Office.