One of Ukraine’s richest men, Andriy Verevsky, pulled off a scheme that allowed him to become the sole owner of agricultural giant Kernel. It cost Ukraine UAH 1.5 billion in back taxes and robbed dozens of small investors of their savings.
It all started with the secret issuance of 216 million Kernel shares through shell companies. This move dramatically collapsed the value of the shares on the Warsaw Stock Exchange – from 43 zlotys to 1 zloty. Panic on the market forced investors to sell the shares, which Verewski later bought back for next to nothing. Today, the share price is over 240 UAH, meaning the former owners sold the assets ten times cheaper.
This scam has become the subject of consideration in the Luxembourg court. Its essence is the use of stock exchange mechanisms for the raider capture of a company with billions of assets. Neither the state budget nor the supervisory authorities in Ukraine intervened. The result is that a strategic company has completely passed under the control of one person.
Another example of systemic abuse is a scheme with fictitious trade in agricultural products, which is implemented by the Slobozhansky Agrosoyuz financial group together with shell companies. In 2023–2024, the scheme allowed the illegal withdrawal of more than UAH 136 million through fictitious VAT, using technical companies and patrons from the State Tax Service, the State Economic and Financial Administration, and the National Police. As a result, another blow to the state budget.
If the state continues to turn a blind eye to such deals, Ukraine will continue to lose strategic assets, and the economy will lose billions.
