The SSU jointly with the ESBU have shut down a large-scale scheme of illegal production and sale of fuel in Zakarpattia oblast. A member of the regional council, who is also a local criminal authority, is involved in its organization.

The person in question is a long-time associate of Viktor Medvedchuk (who is also a godfather to the former’s child). The regional council member had for a long time headed a local branch of the banned opposition platform – for life party.

To conceal his participation in the illegal business, he ‘registered’ the refinery to a company in Kyiv under his control just before russia’s full-scale invasion.

The investigation established that the director of this company had set up illegal sales of diesel fuel of dubious quality from the production facilities of the oil refinery in Mukachevo.

Subsequently, the participants of the scheme purchased oil from Ukrainian suppliers and processed it at the refinery. The finished products were then sold to petrol station chains in Kyiv, Zakarpattia, Lviv and Ivano-Frankivsk regions without permits or paying taxes.

To operate the scheme, the organizers entered false information in financial and business records and reports. During the searches at the clandestine refinery, the law enforcement found over 600 tons of fuel and equipment for its production worth almost UAH 150 mln.

As a result of investigative actions in the offices of the persons involved, the investigators found:

• computers, mobile phones, documents and draft records with evidence of the offence;
• seals of companies involved;
• cash in various currencies.

The investigation is ongoing under two Articles of the CCU: 204 (illegal manufacture of excisable goods) and 212 (tax evasion on an especially large scale).

The organizers of the scheme are facing up to 5 years in prison.

The SSU Office in Zakarpattia region carried out the investigation jointly with the ESBU and the National Police under the procedural supervision of the regional Prosecutor’s Office.