The SBU blocked unlawful production and sale of counterfeit fuel in Poltava and Kirovograd regions. The offenders purchased ethanol from a plant in Poltava region to produce ethanol based fuel.

The leadership of the plant evaded excise duty, causing losses to the state budget totaling UAH 181 m. (USD 6.7 m.).

The SBU found out that the main component of counterfeit fuel was ethanol based diluent. The offenders mixed up diluent with fuel based components to get liquid which was sold as fuel.

They were distributing the counterfeit fuel wholesale for cash. The perpetrators were also selling the counterfeit product through their own network of petrol stations.

One of the perpetrators was served a notice of suspicion of evasion of taxes, duties or other compulsory payments.

The investigation is ongoing.

The operation was carried out by the SBU Office in Poltava Region jointly with the State Bureau of Investigations, under the supervision of the Prosecutor General’s Office.