Assets worth US$24.5 million seized in Ukraine from former United Russia party MP

Oleksii Pavlysh, ECONOMICHNA PRAVDA — TUESDAY, 6 SEPTEMBER 2022, 12:24

Vladimir Krupchak, Photo from Focus.ua

Ukrainian law enforcement officers have seized more than 1 billion hryvnias [approximately US$24.5 million] worth of corporate rights and assets belonging to paper and cardboard manufacturing enterprises owned by a former lawmaker of the State Duma of the Russian Federation.

Source: press services of the Economic Security Bureau of Ukraine (ESBU) and the Prosecutor General's Office

It is noted that ESBU employees discovered nine enterprises run by a former member of the State Duma of the Russian Federation, a colonel in the Russian army.

"In particular, a company engaged in publishing and the manufacturing of paper products appeared to be involved in particularly large-scale tax evasion. The investigation established that company officers had evaded income tax and land tax, resulting in the actual non-payment of more than 132 million hryvnias [approximately US$3.5 million] to the budget," the statement says.

It was also discovered that between 2019 and 2021, employees of the Russian MP’s company had purchased cars, non-residential premises, equipment, etc., which were owned by another company and had been pledged to a bank, at discounted prices.

As part of the pre-trial investigation, the legal entity’s financial and economic activities were investigated and it was established that one of the paper mills in Ukraine had for a long time been transferring funds to the benefit of the aforementioned company under the guise of repayable financial assistance. The total amount transferred was more than 129 million hryvnias [approximately US$3.5 million].

"These actions were intended to conceal the origin of the funds, i.e. to legalise them. These companies turned out to be connected to each other," the ESBU added.

The Office of the Prosecutor General added that corporate rights and 25 properties belonging to the enterprises, which are among the largest manufacturers of paper and cardboard in Ukraine, had been seized at the request of the prosecutors. The total amount of assets seized was more than 1 billion hryvnias [approximately US$24.5 billion].

The name of the Russian MP, according to Economichna Pravda sources, is the owner of the Kyiv Cardboard and Paper Mill, Vladimir Krupchak.

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