Ukrainian Media Publish Full List Of Tymoshenko's Violations

KIEV, Ukraine -- Full description of the economic crimes that Yulia Tymoshenko is arrested and trialed for has been published by Obozrevatel citing a source in the Security Service of Ukraine (SBU).

Yulia Tymoshenko

The Kharkiv department of the Security Service completed investigation in the case.

The former Prime Minister of Ukraine Yulia Tymoshenko has been charged with violations worth USD 20 million.

The charges against Yulia Tymoshenko include embezzlement of state funds in excess of UAH 14 million (equivalent of USD $7 million at the time - ed.), VAT evasion in the amount of UAH 4.7 million (USD $2.3 million), attempted embezzlement of UAH 11 million (USD $5.5 million) in VAT reimbursement, forgery and tax evasion for not paying UAH 681 thousand in personal income tax.

In the course of the investigation it was established that in 1996-1997 the Industrial Financial Corporation United Energy Systems of Ukraine (UESU), headed by Tymoshenko, purchased metal products from domestic producers and exported them to Russia instead of foreign offshore companies (controlled by Tymoshenko and her family) whose addresses were indicated in the export documents.

In order to create an illusion of return of foreign currency earnings to Ukraine Tymoshenko together with UESU top management and personnel of the Joint Stock Bank Pivdenkombank, where she was a president, forged financial statements.

Such scheme allowed the perpetrators to illegally claim VAT reimbursement of UAH 30 million (USD $15 million) from the state budget.

Yuliya Tymoshenko is also accused of not paying of UAH 681 thousand in income tax on USD $1 million she received onto her bank card in 1996-1998 while being a member of Ukrainian Parliament.

In 1995-1997 Tymoshenko facilitated UESU's VAT evasion totaling UAH 10 million by increasing the purchasing price on paper for 34 billion cubic meters of Russian gas.

Besides the listed accusations, Yulia Tymoshenko was found guilty of concealing USD $165 million profits but the criminal case has been closed due to decriminalization of the respective paragraph of the Criminal Code of Ukraine.

According to the currently conducted investigations, Yulia Tymoshenko administered her subordinates in UESU to make unjustified transfer of funds to United Energy International Limited (company within Tymoshenko's control).

It was established that the following sums were wired: USD $944,683,245.63, GBP 30,833,509.91, and DEM 269,304.

Source: The Sacramento Bee


Anonymous said…
Am I the only one to notice that the exchange rates in this article are wrong? To believe the article, USD 1 is equivalent to UAH 2 whereas the current exchange rate is 8...
Lowell said…
Yeah...I noticed. Not sure what the exchange rate was in the 90's. In 2003-2007 when I was in Ukraine on a regular basis, it was UAH 5 to USD 1. Wasn't paying attention before that. Nicholas should know, he was living there at the time.
Nicholas said…
The exchange rates shown are indeed 1:2 which were in effect at the time when the alleged crimes were committed.