The SSU has exposed illegal activity at one of the state-owned enterprises of the Ministry of Economy of Ukraine. According to preliminary estimates, the fraudsters caused losses to the state of over UAH 22 mln (USD 800,000).

According to the investigation, management of the state enterprise was involved in the scheme. Officials, abusing their powers, signed ‘profitable’ contracts with controlled private entities for purchase and sale of agricultural products at prices much lower than market value.

Subsequently, entrepreneurs sold purchased products at market prices, including for export.

Thus, by selling the harvest grown on 15 thousand hectares of land owned by the state enterprise and its branches, the officials caused state losses of over UAH 22 mln (USD 800,000).

During the searches in Kyiv and other regions, the law enforcement seized:

• documents confirming illegal activity;
• illegally sold products worth tens of millions of hryvnias.

The investigation is underway. Criminal proceedings were opened under the Article 191 (misappropriation, embezzlement or appropriation of property by abuse of office) of the CCU.

The SSU conducted the operation jointly with the National Police and under the supervision of Kyiv Podolsk District Prosecutor’s Office.