An organized criminal group received government grants for the development of the agricultural business, but did not create any real farms and instead used the funds for their own needs.

Prosecutors from the Office of the Attorney General reported suspicions against 17 participants in the scheme, who, under the guise of developing greenhouse farming, horticulture, berry farming, and viticulture, misappropriated budget funds amounting to over 34 million UAH.

This concerns funds provided under the government program to support small and medium-sized agricultural businesses, established by the Cabinet of Ministers of Ukraine Resolution No. 738 dated June 21, 2022. The program envisages financing the creation of new greenhouse complexes, the planting of orchards and vineyards, as well as the development of farms with the subsequent creation of jobs and production of goods.

According to the investigation, after receiving the grants, the suspects did not carry out the declared economic activities on the land plots, did not build the facilities outlined in the business plans, and did not plant any crops. The funds received were not returned to the state but were used at their discretion.

Part of the funds was legalized through non-cash financial transactions conducted via controlled enterprises. Such transactions created an artificial flow of funds and formed the appearance of economic activity, complicating the tracking of the use of grant financing.

As part of the pre-trial investigation, 39 authorized searches were conducted in the territories of Kharkiv, Kyiv, and the Kyiv region. Financial and economic documentation, computer equipment, mobile terminals, and expensive vehicles that may confirm the organization of the scheme, coordination of its participants, and movement of funds were seized.

Members of the organized group are charged with misappropriation of property by deception in especially large amounts (Part 4 of Article 190 of the Criminal Code of Ukraine) and legalization of property obtained by criminal means, by prior conspiracy of a group of persons (Part 3 of Article 209 of the Criminal Code of Ukraine).

Currently, the issue of choosing preventive measures for the suspects is being resolved. Investigative actions are ongoing. Other possible accomplices are being identified, and the circumstances of the use of grant funds are being verified.

The pre-trial investigation is being conducted by investigators of the Main Investigative Department of the National Police of Ukraine with operational support from the Security Service of Ukraine under the procedural guidance of prosecutors from the Office of the Attorney General.

Note: According to Article 62 of the Constitution of Ukraine, a person is presumed innocent of committing a crime and cannot be subjected to criminal punishment until their guilt is proven in a lawful manner and established by a guilty verdict of the court.