How the purchase of Volyntobak is linked to the shadow economy

Recently, media reports emerged that tobacco magnate Boris Kaufman acquired a major cigarette distributor, Volyntobak. The deal was reportedly worth $8 million.

This news is particularly noteworthy given that Kaufman himself is under investigation. The NABU is investigating his involvement in operations related to Odesa Airport, while the BEB has filed claims against TESIS (now DL SOLUTION) over the laundering of over 1.3 billion UAH.

Furthermore, this acquisition strengthens Kaufman's position in the tobacco market. His DL SOLUTION already controls approximately 45% of the market, and the addition of Volyntobak's share increases this figure by 10%.

However, the main intrigue lies not in the fact of the deal itself, but in the objectives it serves.

Who became the owner of Volyntobak

According to official data, as of 25 July, the company's shares were distributed as follows:

• Madrid Financial Company LLC – 54.55%;
• Liard Finance LLC – 9.09%;
• Koloprime LLC – 9.09%.

An obvious question arises: why would financial companies engaged in lending and debt buyout invest in a cigarette distributor? At first glance, there is no logic to this. However, when considering illegal schemes, the situation becomes clearer.

How the schemes work

The cash market in tobacco distribution is a powerful tool for collecting unaccounted funds. The essence of the scheme is as follows:

1. Sale of cigarettes "on the books". Tobacco factories sell their products through official distributors.

2. Separation of goods and documents. Distributors sell cigarettes for cash, collecting cash from the market. Documents for the goods are transferred to fictitious companies.

3. Liquidation of shell companies. Companies registered as owners of "virtual" batches of goods are liquidated.
4. Resale of cash. The collected cash is used for cashing out through conversion centres with a commission of around 2%.

Such schemes are actively used in the market. The total volume of operations is estimated at tens of millions of dollars.

Possible purpose of the deal

Given that the actual owners of the financial companies are linked to the shadow business, the purchase of Volyntobak appears to be an investment in the development of such schemes.

Sources indicate that the actual beneficial owner of Madrid Financial Company and Liard Finance is Ihor Stakovichenko, known in financial circles as one of Ukraine's largest "converters" with the nickname Stakan (Glass).

According to insiders, it was in partnership with Kaufman that Stakovichenko acquired Volyntobak to use the company for cash distribution operations. The official part of sales will remain under the control of DL SOLUTION, while the shadow schemes will be implemented through Volyntobak.

Suspicious deal amount

The announced purchase price of $8 million raises questions. The financial statements of Madrid Financial Company and Liard Finance show that their official revenues are too small for such a deal.

For example:

• In 2023, the net profit of Madrid Financial Company was only 382,000 UAH, and Liard Finance – 234,000 UAH.
• In 2022, the situation was even worse: 63,000 UAH and 40,000 UAH respectively.

Considering the actual financial state of the companies, it becomes obvious that the deal could have been financed from unaccounted sources.

What authorities should investigate

This story demonstrates how companies with minimal official revenues acquire multi-million-dollar assets to scale their shadow business. This is a serious challenge for the tax service, the NBU, and law enforcement agencies.

The deal with Volyntobak shows that the fight against the shadow economy must be comprehensive. It cannot be limited to introducing restrictions on card transfers for ordinary citizens. Such deals require close attention and decisive action from the state.

Ukraine is at a stage where questions of combating illegal schemes become a matter of national security and economic stability.