A quarter of current MPs are related to financial and industrial groups - YouControl

A quarter of the current MPs are connected to 100 financial and industrial groups, added to the YouControl system. For the period of 24.02.2022-31.10.2023, the list includes 45 groups related to current and former MPs of the 9th convocation, included 151 Ukrainian legal entities. This is evidenced by the analysis of the YouControl system, UNN reports.

Based on the analytical information, we can assume that during the full-scale invasion there were no radical changes in the structure of such financial and industrial groups. ... It is likely that despite all the changes despite all the changes, existing business ties remain stable, and the economic interests of certain financial and industrial groups can still influence political decisions.

Details

Analysts R&D of the YouControl Center analyzed  changes in the structure of of financial and industrial groups and the reasons for legal entities' withdrawal from them during the period of of the full-scale invasion. 

According to their estimates, currently in the Ukrainian parliament has 403 MPs of the 9th convocation, of which 113 are affiliated with 100 financial and industrial groups added to the YouControl analytical system. 

MPs of the largest faction in the Parliament faction in the parliament, the Servant of the People party, are members of/affiliated with 35 FIGs. MPs from the "Platform for Life and Peace" party are members of 13 financial and industrial groups, from the Batkivshchyna faction - 12, and from the Party for the Future - 11. Some MPs belonging to the same FIG belonging to the same FIG, are members of different factions and deputy groups in the Verkhovna Rada. groups in the Verkhovna Rada. For example, Viktor Baloha is a member of the "Party for the Future", and his cousin Vasyl Petyovka is a member of the to the "Dovira" parliamentary group. Both are key members of the "Baloha and Petyovka Family Group". Baloha and Petyovka". 

In their sample, analysts of the R&D center YouControl Center also included MPs who were deprived of their parliamentary mandate or resigned from their seats mandate for the period of 24.02.2022-31.10.2023. There were 48 of them in total , accounting for 22.5% of the total people, accounting for 22 FIGs certified in the YouControl system. 

It should be noted that more than of ex-MPs of the 9th convocation, who are members of FIGs, lost their status of the MPs before the full-scale invasion of the majority due to the transition to to other public offices. The remaining 15 MPs lost their mandate after February 24, 2022. year. Five of them - due to the loss of citizenship, in particular, Viktor Medvedchuk and Taras Kozak, 8 - at their own request and one at their own request and one - in connection with the transition to the post of Minister of Agrarian of Agrarian Policy and Food. Collaborator Oleksiy Kovalev, who died in the summer of 2022, was deprived of his mandate in January 2023.

Changes in the composition of FIGs in the composition of FIGs and their connection with politicians

Overall, changes affected 76 out of 122 analyzed FIGs for the period 24.02.2022-31.10.2023. 45 FIGs  associated with current and former MPs of the 9th convocation, included 151 Ukrainian legal entities.

Among the added companies to the FIGs that have financial reporting data for the period under study, analysts YouControl  identified the top five companies with the highest revenue in 2022:

-        De Trading LLC (Maxim Efimov Group) Maxim Yefimov Group) - UAH 5.7 billion.

-        PJSC "DONBASENERGO" (Maxim Yefimov Group) - 2.7 billion UAH Maxim Yefimov Group) - UAH 2.3 billion.

-        TRANS OIL COMPANY LLC (Continuum) UAH 757.2 mln.

-        LLC "Bukovynske Hpp" (Ukrainian Agrarian Holding) - UAH 529.4 million.

-        Ternopil Meat Packing Plant LLC (Agroprodservice) - UAH 396.7 mln.

Since the beginning of the full-scale of the 61 investigated FIGs, 248 Ukrainian legal entities have left the legal entities. More than 49% of them are registered in the capital and Kyiv region. More than half - 132 out of 248 companies - left the FIG in 2022. The companies operate in trade (47), real estate (30), agriculture (20), construction (20), and etc. 

In addition, YouControl compiled  the five largest companies by revenue for 2022 that left the from the FIG: 

-        LLC "Mine 1-3 "Novogrodovskaya" (Maxim Yefimov's Group) - 1,000 Maxim Yefimov Group) - UAH 1.04 billion.

-        JV UkrCarpathoil Ltd (Private) - UAH 866.5 mln.

-        SOFRO LLC (Vasylkivsky family group) - UAH 575 million. Vasylkivsky family) - UAH 705.4 mln.

-        AGROCHEM-PARTNER LLC (Guzenko Family Group) - UAH 670.2 mln.

-        LLC "SP "HARKOVENERGOREMONT" (Group of Igor Molotok and Andriy Komar) - 292.7 million UAH.

The top five financial and industrial groups by the number of companies added to the group for the period of 24.02.2022-31.10.2023 included the following: Europe, Agroprodservice, Group Maxim Yefimov Group, Continuum, and Dubnevych Brothers Group.

Among the FIGs associated with the current MPs, the largest increase in MPs, the largest increase was in the FIG Europe, with 13 companies added to the group. This group is controlled by MP Valeriy Dubil. MP Valeriy Dubil and several former MPs of the Chernihiv regional council.

It is noted that during the period of of the full-scale invasion, the vast majority did not experience radical changes in the structure of financial and industrial groups associated with the current MPs. members of parliament. Instead, the number of companies that left the FIGs is more than 1.5 times more than the number of companies that joined them. 

In particular, the top five FIGs by the number of companies excluded from the group during the the analyzed period included: Ukrprominvest, Group Konstantin Zhevago Group, Vasylkivsky Family Group, Privat, Stolar Family Group, and Nestor Shufrych's group.

Four MPs who are are the key persons of the 10 FIGs with the highest number of companies added and excluded from divorced or are in the process of divorcing. 

Divorce of MPs (especially those who are key persons of financial and industrial groups) may be related to the divorce of groups) may likely be related to the desire to avoid publicity and the risk of disclosing information about their property and financial interests. Among other factors that may have prompted this include recent changes in the legislation on the restoration of electronic declaration and financial monitoring.

"In our opinion, the In our opinion, the following can help solve this problem: further improvement of the legislation on declaration and financial monitoring; ensuring the independence of of anti-corruption bodies, as well as increasing public control over the activities of of politicians and financial and industrial groups," said Chalenko