Expert tells how gray grain exports affect Ukraine's economy

Non-return of foreign currency proceeds to Ukraine after "gray" grain exports negatively affects the gold and foreign exchange reserves and exchange rate stability. This opinion was expressed in an exclusive commentary UNN by the deputy head of the All-Ukrainian Agrarian Council, Dmytro Kohan.

"Gray" exports, we just need to understand their nature. This is grain that was bought for cash without official reflection of such transactions, further this grain is exported abroad, and the currency is not returned to the country on such contacts. But there is always a symbiosis. It may be with the return of currency to the country, there may be "white" conventional grain, but without return. But the most "black" story, quite common, is just when they buy grain for cash, but the currency is not returned. The non-return of currency does not affect the budget directly, it affects the exchange rate stability", - said Kohan.

According to him, when foreign currency does not enter the country, the National Bank of Ukraine has to "put out fires" by means of currency interventions and sell foreign currency from the gold and foreign exchange reserves.

"Therefore, we cannot talk about direct impact on the budget, it is indirect.... We bought grain for cash - it is this stage that affects the budget... Honestly speaking, I will not comment on the figures, probably it is definitely not 100 million hryvnias, but also not 100 billion hryvnias. These are large sums, but not half of the budget of our country," Kohan noted.

At the same time, he said, the share of gray exports of grain has significantly decreased this year. Kohan added that the Ministry of Economy reported that in September-October 2023 gray exports were at the level of 28-30%, and in April 2024 - was 18%.

"The decrease is due to the fact that just in September-October introduced procedures for verification of exporters, a whole resolution of the CMU was developed for this purpose, established rules for exporters: if previously any person could bring grain to the port and export it, but now there are additional checks and the need to meet certain criteria or, if the criteria do not pass - you need to submit to the Ministry of Economy contracts, and there they consider them," - said the expert.

Recall

Earlier UNN told how the scheme of "gray" grain exports works. To do this, dishonest entrepreneurs, in particular, use "risky" enterprises. One example is the grain terminal "Olympex", which is still almost the only gate for "gray" exports.

In particular, in January 2021, law enforcers were interested in a number of companies involved in grain export and associated with GNT Group of Odessa businessmen Serhiy Groza and Vladimir Naumenko. LLC "Ferko", LLC "Metalsukrane Corp LTD", LLC "Grain Reloading Complex "Inzernoexport" and enterprise "Vtormetexport", belonging to GNT Group, actively used the requisites" risky" companies for export operations. In the course of the investigation, the territorial department of the BEB in the Odessa region identified at least three such "risky" enterprises: AUTSTAFF 19 LLC, ALISENTA TRADE LLC, and SOLTEK PRODUCT LLC. In addition, the investigation found that the exported grain was stored, inter alia, in the warehouses of Olympex Coupe International LLC, which is also controlled by Groza and Naumenko.

Based on the results of the investigation, law enforcers found that none of the mentioned "risky" enterprises had no proof of purchase of grains that were planned to be exported - more than 2 thousand tons of corn, barley, wheat (this is only what was found by law enforcers during the searches). In addition, all these enterprises violated the requirements of financial and tax reporting, demonstrated zero profitability, and understated profit tax.

According to law enforcers' calculations, Groza and Naumenko's companies caused almost UAH 37.5m damage to the state within the framework of this criminal case alone. At the same time, the exporter of "gray" grain was Agiros LLC, which belongs to a well-known smuggler Vadim Alperin, against whom the SNBO imposed sanctions in 2021 and who was deprived of Ukrainian citizenship. And shipped these grains, according to media reports, another company controlled by Groza and Naumenko, "Attollo Granum." 

This criminal proceeding is currently still under investigation.

Another criminal proceedinginvolving Groza and Naumenko's company, Olympex Coupe International LLC, is being investigated by the territorial department of the Kyiv City BEB. It was opened a year later, in 2022, but also concerns "gray" grain exports.

The case is being investigated under articles on tax evasion, forgery of documents for state registers, legalization (laundering) of proceeds of crime and illegal handling of weapons or ammunition.

The scheme used by Groza and Naumenko's company is identical to the one used earlier, only the names of the fictitious companies differ, and not all of them. In particular, it includes AUTSTAFF 19 LLC mentioned in another criminal proceeding. 

In addition to this company, they also used the "risky" companies EXPRESS ALL and AGROTRANS-GROUP. With their help, according to the investigation, at least 40,000 tons of grain and oilseeds disappeared from the terminal in 2023.