Czechia probes possible tax evasion by companies linked to Poroshenko

Assistance request sent to Ukraine

Czech law enforcement agencies are investigating a major case of alleged illegal VAT refunds by companies linked to former Ukrainian President Petro Poroshenko. According to information published by the media, Czechia has already requested assistance from Ukrainian authorities in the investigation.

According to sources, the case involves €11.5 million that may have been illegally refunded during customs clearance. The case has been under investigation since 23 February 2024, but official comments from the Ukrainian side are yet to be received.

What scheme are Czech authorities checking?

The investigation concerns a Czech company that purchased goods – sugar and grain products – from two Ukrainian enterprises. Investigators have established that the beneficial owner of these companies is Oleksiy Poroshenko, the son of the former Ukrainian President.

The investigation suggests that the company in Czechia may have been artificially created to evade taxes by processing fictitious transactions with Ukrainian suppliers. Moreover, preliminary data indicates a possible link between this Czech company and Oleksiy Poroshenko himself, which could support the theory of deliberate tax evasion.

What are the implications of this investigation?

If the companies' guilt is proven, they may face heavy fines and a ban on operating within the European Union. Oleksiy Poroshenko himself has not yet issued any official comments on the case.

The Ukrainian side is also slow to react publicly to Czechia's request. However, experts suggest that the investigation could affect Petro Poroshenko's reputation, particularly given his political ambitions.