Ukrainska Pravda investigation: President's Office may have taken control over Ukraine's largest chemical company

Ukraine’s Presidential Office is suspected of orchestrating the unfreezing of the assets belonging to one of the country’s largest chemical companies, Karpatnaftokhim, in exchange for a free share in the company, later transferred to a front company.

Source: investigation by Ukrainska Pravda titled The Great Redistribution: The Story of Watchers and Proxies Returning to the Presidential Office

Details: In August 2022, law enforcement officers raided Karpatnaftokhim, suspecting it of funneling over UAH 5 billion (approximately US$120 million) to Russia through shell companies between 2017 and 2022. The court seized the company's corporate rights and property, intending to transfer the assets to the Asset Recovery and Management Agency (ARMA). Then the state would have to profit from the fact that after the investigation and confiscation, the property would be sold to new owners or nationalised.

However, ARMA later stated it could not find a manager for the asset due to procedural errors by law enforcement officers. As a result, over 14 months, Karpatnaftokhim remained unmanaged and in 2023, the court lifted the company's arrest altogether. Six months later, Andrii Veselyi became a co-owner of the company.

Source from the State Tax Service told Ukrainska Pravda that Veselyi officially earned UAH 1.87 million (approximately US$45,000) over 20 years, with an additional UAH 2.28 million (approximately US$55,000) as an entrepreneur. Despite these modest earnings, he became a co-owner of one of Ukraine's largest petrochemical and chemical production complexes, dealing in billions of hryvnias annually.

The Ukrainska Pravda investigative team tracked Veselyi’s brother, Vasyl Veselyi, in Kyiv. His car was frequently spotted entering the government quarter several times a week over a month. Political insiders also reported that his vehicle was spotted near parliamentary committees, the Cabinet of Ministers (Ukrainian government) and close to the President’s Office and the National Bank.

Business sources claim that Vasyl Veselyi, despite lacking any background in banking, was appointed advisor to the head of Sense Bank, a financial institution nationalised due to ties with Russia. Insiders described Veselyi as a "watchdog" for the state at Sense Bank.

Ukrainska Pravda asked Vasyl Veselyi about allegations that he was rewarded in the form of overseeing Sense Bank for providing his brother as a front man for the free transfer of shares of Karpatnaftokhim for the benefit of the Presidential Office.

In his response, Veselyi denied connections with the Presidential Office, claiming his visits to the government quarter were because "he lives there". He also stated that his brother had purchased a share in Karpatnaftokhim with his own funds and denied being a "watchdog" at Sense Bank, stating that he works there "on a voluntary basis".

Andrii Veselyi, when approached, refused to disclose details about acquiring the Karpatnaftokhim stake.

Head of the President’s Office Andrii Yermak has not yet responded to Ukrainska Pravda's inquiry. Meanwhile, the Prosecutor General’s Office confirmed that investigative actions are ongoing in the criminal case related to Karpatnaftokhim.

Support UP or become our patron!