A charitable foundation run by former Ukrainian President Poroshenko used donations to purchase government bonds, – media reports

Charity fund of former Ukrainian President Petro Poroshenko used donations to purchase government bonds.

This was reported by the publication Law and Business.

The report found that in January 2024, the fund used charitable contributions received in its accounts to purchase “military” government bonds (OVGZ) worth 356 million hryvnias (€8.15 million). In April, it received interest on these bonds, which Poroshenko declared as “income” in his financial statement.

The publication also claims that Poroshenko’s charitable activities essentially fund Ukraine’s Ministry of Finance through the payment of bond interest.

“According to experts, all of Poroshenko’s charitable PR projects since the beginning of the full-scale war were financed using state-paid interest on OVGZ, totaling approximately 2.5 billion hryvnias (€57.3 million),” the report states.

Furthermore, Poroshenko’s “International Investment Bank” charged a commission of 1.5 million hryvnias for these bond transactions, meaning “charitable” funds were converted into commercial profit.

The publication suggests that donations to Poroshenko’s fund, which are later used to purchase bonds, are made by companies controlled by the former president. This serves as a tax minimization strategy since taxes are not levied on charitable contributions.

Journalists argue that using charitable donations for profit and tax avoidance may fall under articles of Ukraine’s Criminal Code.

Previously, Ukrainian political circles discussed the possible imposition of sanctions against Poroshenko. Additionally, Serhiy Leshchenko, an advisor to the President’s Office, announced potential legal troubles for the ex-president due to changes in U.S. leadership.