BES exposes 2 ferroalloy plants in evading UAH 1.2 billion in taxes during exports

The Bureau of Economic Security (BES) has exposed two ferroalloy plants affiliated with well-known Ukrainian oligarchs in evading taxes in the amount of almost UAH 1.2 billion during product exports.

This is stated in the BES message, the Ukrainian News agency reports.

It was established that the enterprises exported ferroalloy products to Austria, Cyprus and a number of other European countries for a long period.

When selling raw materials to foreign buyers, factory officials deliberately understated their value.

This allowed them to evade taxes in particularly large amounts. The losses caused to the state are confirmed by the bureau's analysts.

As part of the investigation of the criminal proceedings, detectives also established that the said plants exported about 90% of the raw materials produced.

At the same time, foreign currency proceeds from its sale were not returned to Ukraine.

In particular, the amount of debt for ferroalloy products sold to non-residents in one of the enterprises is UAH 1.1 billion.

In total, during 2022-2023 alone, the plants exported raw materials with an estimated value of USD 853 million.

Currently, based on the decisions of the investigating judge, BES detectives are conducting searches at the mentioned enterprises in order to identify and seize the remains of ferroalloy products, primary financial documentation, as well as other items that may be included in the materials of the criminal proceedings as evidence of illegal activity.

A pre-trial investigation is underway under Part 3, Article 212 (evasion of taxes and fees) of the Criminal Code.

The procedural management is carried out by prosecutors of the Prosecutor General's Office.

As the Ukrainian News agency earlier reported, a network of call centers was exposed in Kyiv and Chernihiv, which defrauded Ukrainians of over UAH 100 million.

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