Ukrainian law enforcement agencies have revealed a significant corruption scheme involving the State Food and Grain Corporation of Ukraine (DPZKU), resulting in the loss of 105,000 tons of grain valued at over $28.8 million.
The investigation, led by the Specialized Anti-Corruption Prosecutor’s Office (SAP) and the National Anti-Corruption Bureau (NABU), has led to suspicions against several individuals. Those implicated include the former chairman of DPZKU, the former head of its trading department, the owner of an international company, a trusted associate of the company’s representative, and an accomplice.
According to the authorities, the scheme was orchestrated in 2021 by the former chairman of DPZKU in collaboration with the director and ultimate beneficiary of the international company. They enlisted the help of the trading department head and two trusted individuals, who played distinct roles in the operation.
The management of DPZKU entered into four contracts with a non-resident company for the supply of feed corn, leading to the shipment of over 100,000 tons of corn. Following the delivery, the group members forged shipping documents to create a façade of control over the goods. The falsified documents were kept in a safe by the trading department director, while the originals were retained by other members of the group.
These actions enabled the group to effectively manage the grain and sell it to foreign buyers in countries such as Iran, Turkey, and Egypt, without any payments being made to the state corporation.
As a result of this scheme, the state corporation suffered substantial losses, with the stolen grain valued at more than $28.8 million.
Funds obtained from the sale of the stolen grain were reportedly laundered through multiple bank transfers to blend them with legitimate earnings.
Currently, three members of the organized group have been detained, and authorities are considering appropriate preventive measures against them.
In a related development, a vessel was recently intercepted in the Black Sea for illegally exporting wheat under a foreign flag from occupied Crimea. This operation was conducted by the Marine Guard of the State Border Service and the Security Service of Ukraine (SBU).
Additionally, reports indicate that Russian forces are transporting grain from temporarily occupied territories in Ukraine to Iran. A new logistical route has been established, with agricultural products being transported by train from the Luhansk region to the Caspian Sea and then onward to Iran.
Ukrainian authorities have uncovered a corruption scheme within the State Food and Grain Corporation, leading to significant losses in grain exports. The investigation has resulted in several arrests and highlights ongoing issues related to grain trafficking from occupied territories.