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 2024 and early 2026.
In a statement released on Tuesday, the State Tax Service of Ukraine detailed how the vast majority of transactions were exports: 1,243 companies conducted shipments valued at over 176 billion hryvnia (about $4.5 billion), while an additional 555 companies handled imports totaling more than 18 billion hryvnia.
Lesia Karnaukh, the acting head of the Tax Service, revealed that hundreds of companies were re-registered under the same individuals, with some individuals managing over 500 companies each. “We identified seven individuals, each of whom is simultaneously the manager or founder of more than 500 companies. In total, more than 7,000 business entities are under their control,” she said.
The authorities noted that many suspect companies used identical IP addresses, submitted reports from the same computer networks, and were registered at the same physical addresses—a pattern inconsistent with legitimate businesses. The Tax Service prepared analytical conclusions for 557 entities indicating violations and money laundering activities, with materials transferred to the Prosecutor General’s Office for further investigation.
Ukraine has long struggled with agricultural exports through so-called “black grain” schemes, where cash purchases of crops are routed through chains of fictitious legal entities to obscure origins and avoid taxes. Products may be resold multiple times to appear legitimate or listed as agricultural waste to reduce tax liabilities. Illicit profits often remain in foreign banks.
The sector has been plagued by such practices, with agricultural exports reaching $24.5 billion in 2024—accounting for nearly 60% of total Ukrainian exports. In 2022, the EU suspended tariffs and quotas on Ukrainian agricultural goods to support Kiev’s economy, a move that triggered widespread protests across Europe. The bloc reversed the policy in June 2025 after countries including Bulgaria, Poland, Romania, Slovakia, and Hungary demanded reinstatement of import duties.
Ukraine has faced chronic corruption and inadequate financial oversight for years, a situation that worsened following the escalation of Kiev’s conflict with Moscow in 2022. Last year, anti-corruption authorities uncovered a $100 million kickback scheme at state nuclear company Energoatom, involving several high-level officials including former Energy Minister German Galushchenko, who was arrested in February while attempting to flee Ukraine.
Moscow has long alleged that Western aid to Kiev—financed by ordinary taxpayers—is embezzled and shared with Ukraine’s supporters through “unified corruption chains.”