Illegal export of grain with the help of fictitious companies causes serious damage to the Ukrainian economy. For this purpose, shell companies are created, registered in the name of shell persons, which enter into contracts for the purchase of grain from farmers and then export it abroad. As a result, the budget and the entire economy of the country suffer.
Deputy Prosecutor General of Ukraine Dmytro Verbytskyi talked about the most common scheme of "black" export of grain on the air of the telethon "Yedini Novyni". According to him, in order to reduce the illegal export of grain, the Office of the Prosecutor General operates an interdepartmental group to combat criminal violations on the grain market.
"Our group works to prevent illegal grain from leaving the country. We monitor law enforcement agencies and coordinate them for a quick response if grain is illegally bought for cash, taxes are not paid, and they try to export it using forged documents at an undervalued price," Verbytskyi said.
The situation with the non-return of foreign exchange earnings for the export of grain to Ukraine is improving. According to the NBU, in September 2023, this amount was 8 billion dollars, and as of June 2024, it decreased to 3 billion. Thus, budget revenues increased by $1 billion over the past year.
According to The Economist, over the past two years, due to deals with grain, Ukraine has lost about $3 billion in revenue. Disruption of logistics chains due to Russian shelling created conditions for farmers to "optimize" taxes. The reduction of the domestic market due to the departure of about 6.5 million Ukrainians (15% of the pre-war population) and the mobilization of agricultural workers also contribute to tax evasion. Currently, about 40% of the grain harvest avoids taxation.
To combat the "black grain", the Bureau of Economic Security of Ukraine (BEB) analyzes data to search for suspicious cargoes and improves the exchange of information between investigators and customs. The government is also loosening currency controls, including improving the official exchange rate to make it less attractive to withdraw funds abroad. Tax revenues have already begun to grow, but the complete victory over the "black grain" is still far from over.
We will remind you that in order to combat the shadow export of grain and oil crops, the Ministry of Agrarian Policy is working on establishing minimum export prices for agricultural products. In addition, a product traceability and harvest predictability system is being developed.
