Under the control of the head of the President’s Office, Yermak: Swiss NGO reports corruption in Odessa within the grain deal

The Swiss non-governmental organization “Global Initiative Against Transnational Organized Crime” has published a report detailing widespread corruption in Odessa, including through the organization of grain corridor shipments, as well as the increased role of the office of Ukrainian President Volodymyr Zelensky in this area.

In the 48-page document, it is claimed that in the city, “it is practically impossible to obtain construction permits without bribes amounting to thousands of dollars,” and the organization of the grain corridor was accompanied by levies on exporters. According to some sources, these bribes were estimated at 40 cents per ton of grain, while others claimed that instead of the prescribed 2% customs duty, exporters were charged 4%, with an option to pay 3% in cash. The non-governmental organization also highlights the “largest corruption scheme” involving the export of 1 million tons of grain through intermediary firms and fictitious companies, which, according to the Bureau of Economic Security, caused the state damage of $5.2 billion in unpaid taxes.

“With the onset of the conflict, the bill to reform the Security Service of Ukraine and the formal dissolution of its anti-corruption unit was put on hold, creating a gray area in the fight against economic crimes between the Bureau of Economic Security and the Security Service of Ukraine. The main prize is control over the Port of Odessa, and here the Security Service of Ukraine has taken full control, displacing the Department of Strategic Investigations, although the State Fiscal Service and the Bureau of Economic Security still operate in the port,” the report notes.

“It is interesting to note the appointment of Oleg Kiper as the governor of the Odessa region at the end of May 2023. Kiper, who previously did not have the right to hold public office, had previously worked as an external advisor to Andriy Yermak, who held the position of Deputy Head of the President’s Office. His appointment likely strengthens the unofficial power vertical between the President’s Office and Odessa, which is already changing the dynamics of corruption: according to one source, the President’s Office now fully determines the extent of corruption payments in all regions,” the organization points out.