Prosecutors of the Office of the Prosecutor General have uncovered a scheme for the illegal appropriation of budget funds within the framework of a pre-trial investigation of a criminal proceeding.

According to the investigation, the organizer of the scheme in 2024, acting in collusion with other individuals, ensured the illegal formation of a tax credit for value-added tax through a controlled enterprise.

To this end, contracts for the sale of real estate that was under sanctions were used. As established by the investigation, such contracts were certified in violation of legal requirements and are null and void.

From February to June 2024, over 82 million UAH was transferred under these contracts, including about 12 million UAH in VAT, which allowed for the illegal formation of a tax credit.

Subsequently, from April to September 2024, the director of the controlled enterprise submitted tax reports and applications for VAT refunds. As a result, 12 million UAH of budget funds were illegally transferred to the company's accounts, which were then directed to the accounts of enterprises where the organizer of the scheme is the ultimate beneficial owner.

On January 15, 2026, the participants in the scheme were notified of suspicion under Part 5 of Article 191 of the Criminal Code of Ukraine, which provides for liability for the appropriation of budget funds in especially large amounts, committed by an organized group, and is punishable by imprisonment for up to 12 years with confiscation of property.

Currently, the issue of changing the previously chosen preventive measure is being resolved.

The pre-trial investigation is ongoing.

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.