The SSU jointly with the ESBU have exposed new crimes of the sanctioned russian oligarch Mikhail Shelkov, involved in schemes of covert supply of Ukrainian raw titanium to the aggressor state.

According to the investigation, he circumvented personal sanctions imposed on him by Ukraine’s National Security and Defence Council and to do so used a controlled company in a European state.

‘On paper’, this foreign company was a customer ordering titanium raw material from Demurinsky Mining and Processing Plant LLC in Dnipropetrovsk region. However, Ukrainian products were actually shipped to russia by rail.

This scheme was in place before russia’s full-scale invasion and brought its organizers millions in excess profits in the form of tax evasion and hiding real income.

During 2020-2021, the offenders caused losses to the state budget of about UAH 100 mln (USD 2.6 mln).

Based on the SSU and ESBU’s evidence, Shelkov has been notified of suspicion under two Articles of the CCU:

• 212 (tax evasion);
• 209 (laundering proceeds of crime).

In June 2023, the SSU served him a notice of suspicion in connection with another episode - under Article 110-2.3 of the CCU (financing actions committed with the aim of forceful change or overthrow of the constitutional order or seizure of state power, change of the boundaries of Ukraine’s territory or state border).

At that time, the SSU identified that Shelkov had been covertly supplying Ukrainian titanium to russia for the needs of russia’s military-industrial complex.

The investigation is underway. Since the suspect is in the aggressor state, comprehensive efforts are taken to bring him to justice.

The investigation is conducted under the procedural supervision of the Prosecutor General’s Office.