Ukraine's Security Service averted illegal privatization of Sumykhimprom

The Security Service of Ukraine (SSU) has uncovered illegal activities of Sumykhimprom's officials aimed at intentional bankruptcy and then alienation of the property of the state-owned enterprise in favour of private commercial structures.

In the course of the pre-trial investigation, facts of contrived formation of accounts payable by the management of Sumykhimprom were documented by attracting loans secured against its property, which were later used to purchase raw materials at inflated prices from controlled entities.

According to experts, the company's bailout procedure initiated in 2012 does not meet legal requirements and contributes to the further accumulation of its debts. The management's actions led to the accumulation of Sumykhimprom's debts worth over UAH 2 bln, non-payment of dividends to the state and prevention of the company's legal privatization.

Law enforcers conducted authorised searches of the suspects' offices and residences during which they seized false accounting records and other materials confirming the unlawful nature of their actions.

"To prevent illegal alienation of a strategic state-owned enterprise, judicial authorities have seized the property complex of Sumykhimprom," the statement reads.

Investigations are underway to establish all parties involved.

In 2020, Sumykhimprom paid UAH 330.4 mln of taxes.