Economy 2024-02-15T04:54:34+02:00
Ukrainian news
Economic Security Bureau Arrests Iron Ore Worth UAH 1.8 Billion Owned By Pro-Kremlin Oligarch

Economic Security Bureau Arrests Iron Ore Worth UAH 1.8 Billion Owned By Pro-Kremlin Oligarch

oligarch, seized property, arrested assets, Economic Security Bureau

The Economic Security Bureau has arrested iron ore worth about UAH 1.8 billion owned by a pro-Kremlin oligarch.

This is stated in the Economic Security Bureau’s message, Ukrainian News Agency reports.

"Detectives of the Economic Security Bureau arrested 166,000 tons of strategic raw materials - iron ore owned by a foreign company. A non-resident legal entity registered in the EU country, together with other Russian companies affiliated with an RF oligarch citizen close to the President of Russia. The estimated cost of the seized ore is about UAH 1.8 billion in equivalent (approximately USD 45 million)," the report said.

It is noted that Economic Security Bureau employees convicted the mentioned company of tax evasion on an especially large scale.

"It was established that in the extension of 2021-2022, it declared the movement of iron ore in the territory of Ukraine to the countries of Asia, in the customs regime "transit," totaling more than UAH 1.3 billion. To avoid paying taxes, fees and other mandatory payments paid when importing goods to the territory of Ukraine, the company's employees used the so-called "interrupted transit" mechanism. There were fictitious documents on ore export outside Ukraine. In fact, the company's employees tried to ship goods to business entities - residents of Ukraine. Thus, the losses of the budget of our state from evading the payment of value added tax amount to more than UAH 118 million," the statement said.

According to the report, during the operational and investigative measures in several seaports of Ukraine, 166,000 tons of iron ore belonging to the mentioned company were arrested.

Pre-trial investigation in criminal proceedings on grounds of violation of Part 3 of Art. 212 of the Criminal Code of Ukraine (tax evasion, fees, mandatory payments in especially large amounts) is carried out by detectives of the Main Unit of Economic Security Bureau Detectives under the procedural leadership of prosecutors of the Prosecutor General’s Office and operational support of employees of the Security Service of Ukraine.

"The mentioned Russian pro-Kremlin oligarch, a billionaire close to Russian President Vladimir Putin. After the invasion of the Russian Federation on the territory of Ukraine on February 24, 2022, he was included in the sanctions lists of the United States and the European Union. The oligarch is prohibited from entering the EU countries, as well as "frozen" all his assets. The United States and EU countries have imposed sanctions on yachts, private jets, a villa, 6 companies that belong to the assets of the oligarch in the amount of more than EUR 60 million," said the statement.

Also on October 19, President Volodymyr Zelenskyy put into effect the decision of the National Security and Defense Council of Ukraine "On the application and introduction of amendments to personal special economic and other restrictive measures (sanctions)," according to which personal restrictive measures are applied to the Russian oligarch (sanctions) among which the blocking of assets is the temporary deprivation of the right to use and dispose of assets belonging to an individual or legal entity, as well as assets for which such a person can directly or indirectly (through other individuals or legal entities) to perform actions identical in content to the implementation of the right to dispose of them, as well as a complete cessation of transit of resources, flights and transportation through the territory of Ukraine.

As Ukrainian News Agency earlier reported, in April, the Economic Security Bureau secured the arrest of 100% of the corporate rights of a mining and processing plant that supplied strategic products to Russia.