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Who gets generous subsidies from the government of Ukraine

Кто получает щедрые дотации от правительства Украины

The Parliament and the government generously allocated from the state Treasury giant grants and other assistance to the largest agricultural companies of the country that are owned by the multimillionaires Yuri Kosyuk, Oleg Bakhmatyuk, Andriy Verevskiy and Vitaly Homutynnik.

Yacht Ace — 87‑metre vessel with six cabins-apartments, sauna, swimming pool, gym and cinema — often staying in different parts of the world.

Built in 2012 in Germany, the yacht — not just a ship, but a symbol of success of its owner, who, according to Deputy Sergei Leshchenko is Yuriy Kosyuk.

Kosyuk is the key shareholder of Agroholding Myronivsky Hliboproduct (MHP), and former Deputy head of the presidential administration Poroshenko. The capital of this superrare, the main asset of which is the brand Nasha Ryaba, NV in 2017 is estimated at $693 million.

The yacht itself is worth approximately $150 million And Kosyuk can afford such personal expenses: only in the past year, MHP has generated $230 million in net profit. Of which $80 million went to the payment of dividends and Kosyuk, in turn, received a share of $53 million.

Almost the same amount — $ 52.1 million — the holding company of the owner of Our pockmarked in 2017 listed by the state as subsidies to support livestock. This is indicated by the data branch report prepared by specialized experts at the request of NV. The newspaper received the Ministry of agrarian policy complete list of companies receiving subsidies— it contains hundreds of legal entities. Analysts estimated this long list from the perspective of the ultimate beneficiaries are the designated recipients of state aid. Next, the data were summarized.

“It’s not even lobbying, and the elements of political corruption”,— said the head of the group of companies Agrotrade Vsevolod Kozhemyako

The government, as evidenced by the experts ‘ report, generally favors arogyadham. So, in the same 2017 a budget allocated another $ 34 million (or UAH 905 million) of support holding Oklanderlig belonging to the former multimillionaire Oleg Bakhmatyuk.

In his person, the Treasury helped the man who owes the state (represented by the NBU) of UAH 10.9 billion for refinancing loans obtained by the Financial initiative and VAB. Both companies, the regulator has previously acknowledged bankrupt.

For all of last year’s state budget, according to the agriculture Ministry, has allocated for assistance to farmers 4 billion UAH. Of them structure Kosyuk and Bakhmatyuk, according to the analytical report, made at the request of NV, has received a little more than half — 58 %.

The rich need to help
The head of the government Volodymyr Groysman has repeatedly promised to support the agricultural sector. She, the head of the Cabinet, forms somewhere the sixth part of the total produced in the country of production, and therefore requires full assistance from the state.

However, the Prime Minister declares that he intends first to help small and medium farmers. But in the end the financial “crutches” from the state go to the giants of the industry that feel great. “The profitability of the business MHP is 38%, ” — says Marian zablocki, head of the Ukrainian society of economic freedoms. He also advises Nina Yuzhanina, Deputy of the Bloc of Petro Poroshenko (BPP) and the head of the parliamentary Committee on taxes.

Subsidies — part of the budget process: the relevant bills to Parliament making the Cabinet, then MPs complement its amendments and vote the package. That step changes, as explained by HB source in the Verkhovna Rada committees, lobbyists, and make convenient for the largest farmers, the sections or paragraphs.

As Kosyuk, Bakhmatyuk in Parliament, there are compact, but skilled a “support group” — about three or four deputies. They are, according to the source of the HB and do the necessary work. And when the project budget or other relevant documents goes to the session hall, the parliamentary majority is simply not able to understand the intricacies made edits — and members vote for the entire package of proposed laws in General.

That this scheme works, it says an example of the activities of Nicholas Kucher, member of the BPP, who previously worked in the MHP.

With the current year’s budget was supposed to be the norm that large agricultural companies are unable to more than 150 million UAH of subsidies. However, at the meeting of the budget Committee of Parliament to the Coachman proposed to remove the amendment, and colleagues agreed with him.

“I tried to explain to the deputies that it is impossible so much money to give the poultry farmers, but to no avail,” says zablocki.

In the MHP as Oklanderlig, refused to discuss the topic with the NV grants.

However Kosyuk blog on the online platform Ukrainian Pravda in late winter explained that subsidies to large agricultural enterprises — not their whim, and the initiative of the Rada and Cabinet. “It is the government’s decision was intended to nullify the corruption in agribusiness and bring the last of the shadow environment,” said the owner of Our lumpy. Supposedly, according to the principle “pay more taxes get more support” and are subsidized. And if the agricultural company shows a profit, pays taxes to the state, it receives a proportionate subsidies.

The businessman said that due to MHP’s Treasury receives a steady foreign exchange earnings. “In this context, a subsidy is absolutely adequate, justified and necessary support for companies financing the economy of Ukraine”,— wrote Kosyuk.

Groisman, as the parliamentary majority, apparently, agrees with the position of the owner of MHP. However, even many of his colleagues in the business are not ready to understand and accept Kosyuk. One of them — Vsevolod Kozhemyako, head of the group of companies Agrotrade, said the current practice of subsidizing large agricultural holdings is fundamentally wrong. “It’s not even lobbying for their interests, and elements of political corruption,” he said.

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