Who "protects" the illegal industrial waste processing business in Zaporizhzhya

Who "protects" the illegal industrial waste processing business in Zaporizhzhya

Multi-million schemes involving illegal processing of industrial waste, tax evasion, and the legalization of "black" cash flows—all under the nose of the tax service in Zaporizhzhya.

According to media reports, millions of hryvnias are being funneled into the shadows under the guise of legitimate business, avoiding the state treasury thanks to the close "friendship" between cunning businessmen and local "tax officials."

Zaporizhzhya-based NVO "Ukropromecology," owned by businessman Stanislav Kapustin, is suspected of involvement in multi-million frauds. Specifically, these schemes are related to the illegal processing of industrial waste, tax evasion, and the legalization of funds obtained through criminal means.

Journalists from the site important.com.ua assert that such large-scale fraudulent schemes cannot be carried out without the direct involvement of higher-echelon regional tax officials.

According to sources from the publication, the company "Ukropromecology" extracts metals illegally and without permits or licenses from slag heaps in Zaporizhzhya, and sells the finished raw materials—expensive ferroalloys—on external and internal markets. Journalists claim that since the waste is extracted illegally, the company cannot officially account for expenditures on their acquisition. To address these delicate issues, Kapustin, with the help of Zaporizhzhya "tax officials," devised the following "scheme" with businessman Oleh Serovskyi, whose companies engage in the retail sale of automotive fuel through the "ZOG" network of gas stations.

Under the guise of supplying liquefied gas, LLC "NPO Ukropromecology" has Oleh Serovskyi resolving the "cash-out" of Stanislav Kapustin’s profits for a certain percentage.

Meanwhile, the owner of "Ukropromecology" receives cash to purchase waste from heaps and saves millions from evading value-added tax (VAT). Following this scheme, "Ukropromecology" "purchases" tens of tons of liquefied gas from businessman Serovskyi every month.

Moreover, the enterprise also consumes a large amount of electricity, as the production equipment operates on electricity.

According to the publication, from January 2017 to June 2018 alone, LLC "NPO Ukropromecology" on paper acquired gas worth over 74 million UAH from Oleh Serovskiy’s firms.

Thus, the company formed a tax credit scheme amounting to 12.3 million UAH, since the purchased gas, according to documents, was allegedly used for the enterprise’s production needs. According to unconfirmed data obtained during the investigation by important.com.ua, the tax credit scheme is personally overseen by the Acting Head of the Main Directorate of the SFS in Zaporizhzhya region, Yuliana Kozachenko. Her deputy, Antonina Vahilevych, according to "Ukropromekologia" employees, personally ensures the resolution of issues with tax audits at enterprises involved in the schemes and gas stations. More on the "schemes" for tax evasion and the "friendship" between tax officials and "gray" businesses can be found in the investigation by the publication.