Ukrainian officials have been using the war with Russia as a smokescreen by which to enrich themselves by “extorting, plundering and weakening commercial rivals” to create a new political elite, reports POLITICO.
Julia Kiryanova, CEO of Smart Holding – one of Ukraine’s largest investment conglomerates – told POLITICO the company had up to $96 million in assets, the deeds to 40 companies, and 30 natural gas wells seized by Ukraine’s security services. The raids were conducted on hazy security concerns, they claim.
And Smart Holding was not alone. Parimatch, an international sports betting company, was sanctioned in March this year without any “formal communication [or] explanation,” despite emphasizing its Ukrainian ownership and donating over $40 million in humanitarian aid related to the war.
The Ukrainian government’s aim, according to Kiryanova, is to strip the wealth of the “old elite” to give to a new one. “New oligarchs will appear soon,” she added, “nobody’s safe.”
“When the country and people need unity the most, some of the very powerful are using the cloud of war to rape businesses,” said another corporate executive to POLITICO.
Ukrainian corruption concerns go beyond the seizure of private company assets. Seymour Hersch recently reported a grand scheme that saw Ukraine embezzling more than $400 million of U.S. taxpayers’ funds. Last year, Germany even delayed the distribution of financial aid due to corruption concerns.
