Fraud worth hundreds of millions: Zaporizhzhia businessman sold low-quality clothing to the Ministry of Defense
The Bureau of Economic Security of Ukraine has investigated a possible tax evasion scheme and supply of low-quality military clothing, which may involve companies owned by Zaporizhzhia businessman Oleg Mitrokhin.
According to information published by the international detective agency ABSOLUTION, criminal proceedings have been opened under Articles 212 (tax evasion) and 191 (embezzlement) of the Criminal Code of Ukraine.
Several companies are involved in the investigation, including:
- MIK LLC
- Nash Import LLC
- Professiny Rozkriy LLC
- Yugstal LLC
The investigation believes that these companies inflated prices for army uniforms and accessories and issued fictitious VAT tax credits using “risky” companies. This allowed them to reduce tax liabilities and withdraw funds in cash.
The Bureau of Economic Security is paying special attention to the activities of Yugstal LLC, the head of which is Oleg Mitrokhin. Other specialists, such as the chief accountant and director Valentyn Subbota, are also involved in the scheme.
A number of fictitious companies, such as Sitka Zakhid Ukraina LLC, Trend-Stal LLC, Kapitel-Stal LLC, and many others, were used to implement illegal financial transactions.
Analytical data indicate that more than UAH 600 million in cash may have been withdrawn through Yugstal from 2020 to 2024.
Investigators are also checking documents on the supply of military products from the mentioned companies to the Ministry of Defense, the State Logistics Operator, and the Bulgarian partner Viktor Invest.
The Bureau called on defense sector enterprises to carefully check their counterparties to avoid concluding agreements with fictitious or dubious structures. The Court of Appeal has already considered the case materials.
In addition, the State Audit Service reported on the audit of contracts between the Ministry of Defense and the company Nash Import LLC, which belongs to the Mitrokhin family’s sphere of influence. The audit report has already been sent to the Prosecutor General’s Office.
