Corruption in Ukraine

OLEKSANDR YEFREMOV

AEfremov

Oleksandr Yefremov

Oleksandr Yefremov has been Chairman of the Party of Regions in the Verkhovna Rada (Parliament) of Ukraine since 2012. He was Deputy of Viktor Yanukovych, who headed the Party of Regions until he was elected President. Yefremov is member of the Committee on Regulations, Deputy Ethics and Ensuring Work of the Verkhovna Rada of Ukraine.

Oleksandr Yefremov believes that the laws adopted by Parliament on January 16, 2014 are based on the legislation of the EU, the U.S. and Canada. Moreover, Yefremov states that the laws, which international experts and politicians have called “draconian” and “laws on dictatorship”, were adopted in accordance with all the rules and regulations and in compliance with required lawmaking procedures. However, the video recording showing the vote on January 16 recorded that the deputies voted by a show of hands, but the number of hands was not counted, which is in flagrant violation of the given Regulation. Oleksandr Yefremov has been a national deputy from the Party of Regions since 2006, and has also headed the Committee on Regulations, Deputy Ethics and Ensuring Work of the Verkhovna Rada of Ukraine.

Before his election to Parliament, Oleksandr Yefremov headed the Luhansk Regional State Administration (1998-2005). In 1997-1998, Yefremov was Deputy Chairman of the Lugansk Regional Administration.

During Yefremov’s term of office as head of Luhansk Region, the regional mortality rate exceeded the birth rate by three times. Luhansk Region also led all regions in terms of poverty. The highest arrearages were recorded in this region. The volume of production in the shadow sector accounted for over 60%. Entire cities with a population of hundreds of thousands began dying out. Unemployment and poverty created ideal conditions for an unprecedented and drastic spread of HIV/AIDS, tuberculosis and hepatitis.

As head of the Regional State Administration, Oleksandr Yefremov, along with several business partners, bankrupted and destroyed a network of economically viable industrial enterprises in the region through a series of financial and political schemes and machinations, leaving thousands of workers jobless in the mining and construction industry.

The money laundering schemes using funds from the budget of this politician’s business group have not particularly changed during Yefremov’s term of office as national deputy from the Party of Regions.

As of January 2014, Oleksandr Yefremov’s business interests have been centered on companies that can be sorted into two groups:

  • the Financial Group, which ensures asset management and is controlled by the holding company –TBM Holdings, Inc, registeredin the state of Nevada, U.S.
  • the Industrial Group, which earns billions ofhryvnias (UAH) through public procurement, by supplying various products and services to state-owned enterprises in Luhansk Region.

Financial Group

aefremov-diagram1-eng

TBMHoldingsInc was founded in the state of Nevada, U.S. on January 27, 2004. The authorized capital of this company amounts to $110 thousand US. According to an extract from the State Register of Nevada, the CEO and President of TBM Holdings, Inc is Khristo Kolev, a Bulgarian national (address: 2360, 400 Corporate Circle St., Henderson, NV, 89074-7722). However, in a presentation posted on the official TBM Holdings, Inc website, it is stated that the controlling shareholder of the group is (or has been for some time) Eduard Lozovsky, who has been working as Deputy Chairman of the Luhansk Regional State Administration since April 2010.

It was Eduard Lozovsky who recently made a comment approving the armed police attack on Euromaidan protesters, noting that it would be advisable to disperse the people “as Zhukov did in 1946 when he dispersed thugs in Odessa.”

lozovskiy

Eduard Lozovsky
“Bands of vagrant bums occupied the center of the capital, and only after one month after these Nazi troops had stormed Bankova Street can we finally say that “the police had the right to shoot at these people”. But perhaps the scenario called for Zhukov’s actions in Odessa in 1945?
The police had the right to shoot at people near the Kyiv-Svyatoshyn Regional Court – Ministry of Internal Affairs

According to numerous reports in the mass media, Eduard Lozovskyis a close friend and business partner of Oleksandr Yefremov.

The TBM Holdings, Incwebsite points out that part of the business group includes other companies:

TBMManagementLimited: registered in the British Virgin Islands, a subsidiary of the American companyTBM Holdings, Inc. Khristo Kolev has been CEO of this company since November 2005.TBMManagementLimited was founded in order to control the circulation of funds, coordinate Ukrainian and American legislation and optimize company costs.

Finansyst PrJSC: founded on July 4, 2001, registered address – 20-H Oboronna Str., Luhansk. 94% of the company is owned by TBMManagementLimited, British Virgin Islands. The company manages the American firm’s – TBM Holding, Inc – assets in Ukraine. It is a tool for investment projects, effectuates company acquisitions and plans and coordinates TBM Holdings, Inc operations.

Oranta Luhan PrJSCregistered on September 14, 1994, address – 20-H Oboronna Str., Luhansk. According to the State Register, 96.75% of the stake in the company belongs to High Thermal Technologies Ltd., but the TBM Holdings, Inc website indicates that the company is controlled byTBM Holdings, Inc. The company provides insurance services to company groups belonging to Yefremov and Lozovsky. In 2011 the company owned about 19 % of total shares of Ukrkomunbank PrJSC.

Thermo PrJSC: in December 2007, the founder and main shareholder of the Thermo Group, Oleksandr Parshyn, stated that Thermo PrJSC was seized in a raid by Eduard Lozovsky. The ex-shareholder provided evidence that Thermo JSC and its subsidiaries were then transferred to TBM Holding, Inc by fraudulent machinations of corporate documents and forceful actions on the part of Lozovsky. Most ofThermo JSC assets and production were registered in a highly questionable way to Тhermo Trade Ukraine LLC., which was founded on January 17, 2008, and is owned by Novostroy LLC, which is, in turn, wholly owned by TBM Management Limited, British Virgin Islands.

Ukrainian Communal Bank PrJSC (Ukrkomunbank): numerous media publications have reported that the beneficial owner of Ukrkomunbank is Oleksandr Yefremov. The TBM Holding, Inc website indicates that Ukrkomunbank is one of the structures controlled by the American holding company. The bank focuses its business activities in the Luhansk Region: subsidiaries of this bank can be found in every city of the region, and the largest companies in the Luhansk Region use the services of Ukrkomunbank.

Oleksandr Yefremov acted as Chairman of the Board of this bank from late 1996 to 1997. Eduard Lozovsky worked at Ukrkomunbank in several managerial positions as of August 1996, but, after Yefremov was elected as Deputy Chairman of the Regional State Administration in 1997, Mr. Lozovsky became Chairman of the bank’s Board of Directors.

For over ten years, Ukrkomunbank has been one of the key companies belonging to the Yefremov-Lozovsky Group. Since the late 1990s, the bank has been used to instigate different semi-legal schemes, in particular, the bankruptcy of state enterprises and various acquisitions procured at lower prices.

This is exactly what happened to the Stakhanovsky Koksokhim Plant, which, according to Serhiy Tytov, ex-director of the company, was totally destroyed by Oleksandr Yefremov.

In particular, during his term of office at the Regional State Administration, Yefremov threatened and coerced the Stakhanovsky Koksokhim Plant (and several other state-owned industrial enterprises) to buy gas at doubly inflated market prices from one single company – Fond JSC.

According to data available from the official inspection carried out under Order No.200/5 dated February 25, 200 on the instruction of the Cabinet of Ministers, Yefremov was one of the founders of Fond JSC –owner of 10% of the authorized capital of the company – during his term of office as Deputy Chairman of the Luhansk Regional State Administration (from March 11, 1997 to March 22, 1999). In November 1997, he was also one of the founders of the Luhansk Energy Alliance JSC, which, in turn, was a founder ofUkrkomunbank PrJSC in May 1998.

According to Mr. Tytov, at that time the market price of gas for companies was worth $30 US per cubic meter, but through various quasi-legal methods of harassment and intimidation, Yefremov and his close associates forced the Stakhanovsky Koksokh Plant to buy gas exclusively from Fond JSC at $80 US per cubic meter, which constituted a financially prohibitive price for the factory. Due to large the factory’s indebtedness, Fond JSC stopped supplying gas to this state enterprise, thus blocking and making company operations impossible. So, within a few months, the Stakhanovsky Koksokhim Plantwas driven into excessive debt, and the only working unit (the resin treatment plant) was purchased for 2,578,144.62 UAH (around 322,268.07 US) by Fond JSC at an auction without competition. Ultimately, the funds from the sale were not left at the company, but were credited by the plant to Ukrkomunbankto cover the outstanding loan for gas supplies.

See documentary film outlining the purposeful destruction of the Stakhanovsky Koksokh Plant.

A similar fate befell more than ten industrial and manufacturing state-owned companies in the Luhansk Region during Oleksandr Yefremov’s term of office as Chairman of the Regional Administration, including the following plants: Krasnodon Coal, Pervomaysk Coal, Stakhan Coal, Sverdlovsk Anthracite, Rovensk Anthracite, Lugansk Coal, Lugansk Enamel, Alchevskiy Steel Works,Krasitel OJSCand others …

In summary, Ukrkomunbankplayed a leadingrole ineach bankruptcy schemeand the subsequent appropriation of assets from state-owned enterprises in the Luhansk Region during Yefremov’s term of office.

Ukrkomunbank in Luhansk

Ukrkomunbank is officially registered at the following address – 18-A V.V. Shevchenko Str. in Luhansk. The bank obtained this building through semi-legal procedures. In particular, the Regional Council gave this public building free-of charge to a private owner – Komunalshchyk LLC, a newly structured division of the Regional State Administration and the Regional Council. In turn, Komunalschyk LLC promptly sold the premises for one million UAH (around 125 million US) to Ukrkomunbank. The fate of these one million UAH is unknown as Komunalshchyk LLC was promptly dissolved.

As of January 1, 2012, Ukrkomunbank disposes of the following correspondent accounts:

Name of Bank,
TELEX or SWIFT code
Account Number Currency
FINANCE AND CREDIT BANK JSC, Kyiv
60 Artioma Str., Kyiv, 04050, Ukraine
16001012295840
16003012295978
USDEUR
SWIFT: UAUX FBAC 16008012295810 RUB
FORUM PrJSC, Kyiv 16000100007/840 USD
7 Verkhovnoyi Rady Ave. 16000100007/978 EUR
Kyiv, 02100, Ukraine 16000100007/643 RUB
SWIFT: UAUK FJSC 16000100007/826 GBP
UKRSIBBANK, Kharkiv
60 Moskovsky Ave., Kharkiv, Ukraine
SWIFT: KHAB UA 2K
16000580380000 EUR, USD, RUB, BYR, UAH
NATIONAL INVESTMENTS JSB, Kyiv
54 Volodymyrska Str.,
Kyiv, 01601, Ukraine
160093011843/840 USD
SWIFT: NUAUKJSB 160093011843 UAH

Industrial Group

aefremov-diagram2-eng

Besides the companies of the Financial Group controlled by Yefremov and Lozovsky through the American company TBM Holding, Inc, Yefremov’s business interests include a number of Industrial companies that systematically win multimillion-dollar government procurements. This group includes the following enterprises:

DS-8 LLC: established on 23.06.1998; 66.8% of the company is owned by Oleksandr Yefremov’s son, Ihor Yefremov. The authorized capital of the company amounts to 28,200 UAH (around 3525 US).

From January 12, 2010 to November 2013 DS-8 won public procurements totaling one billion 300 million UAH (around 162 million 500 hundred thousand US). Clients under these agreements were as follows:Luhansk Coal SE (state enterprise) and Donbas Antracite SE. The agreement generally concerned the supply of different kinds of equipment and repairs to the workplace.

Indeksprom LLC: founded on 11.09.2002; 39% belongs to Oleksandr Yefremov’s daughter, Nataliya Yefremov; the authorized capital amounts to 46 thousand UAH (around 5,758 US). From January 1, 2008 to January 27, 2014, Indeksprom LLC won public procurements totaling one billion six million UAH (around 125 million 750 hundred thousand US). The main customers for goods and services, as in the case of DS-8 LLC were state-owned companies, such as Luhansk Coal SE and Donbas Anthracite SE.

Journalists at Nash Hroshi (Our Money) have repeatedly reported suspicious multimillion tenders that would benefit Indeksprom and DS-8. In particular, these companies often supply goods and services at inflated prices, whereas cheaper offers are rejected on formal grounds by the customer; these companies continue to organize tenders amongst each other, thus simulating market competition. Several acquisitions won by DS-8 LLC andIndeksprom LLC have been denounced by the Anti-Corruption Centrein partnership with national deputies and duly reported to regulatory and law enforcement bodies.

Overall, from 2010 to 2013, Luhansk Coal held tenders totaling 5.2 billion UAH (around 650 million US).3.8 billion UAH (around 475 million US) went to Yefremov’s Group of Companies.

In March 2013, at the initiative of Regional Electric Network SE,bankruptcy procedures were initiated for Luhansk Coal Plant SE due to non-payment of debts amounting to 227.4 million UAH (around 28.42 million US) for electric power supply. One of the creditors was Ukrkomunbank, which reported that the given company was indebted in the amount of 606.6 thousand UAH (around 75.82 thousand US).

Obviously, Luhansk Coal SE, which is one of the largest coal-mining enterprises in Ukraine, met the same fate as the other state-owned enterprises that were purchased for a song due to bankruptcy by Yefremov and his business partners in 1997-1998.

For example, in 2013, Yefremov’s Group received a huge Luhansk plant specializing in the processing of non-ferrous metals – Intersplav JV – for the price of a three-room apartment in Kyiv. The plant was a joint venture between a Spanish company – BEFESA ALUMINIO BILBAO, SL LLC and the Ukrainian government on behalf of the Donetsk Scientific and Industrial Institute of Non-Ferrous Metals. Purchasers from Intersplav included Volkswagen, Nissan and Toyota at the beginning of 2000s. In December 2010, Intersplav signed a loan agreement with Ukrkomunbank totaling 2.42 million UAH (around 302.5 thousand US) secured by all its assets. The contract was signed by the Bulgarian national, Khristo Kolev, who had been hired not long before to occupy the position of Manager of Finance and Development at the Intersplav Plant. Khristo Kolev obtained formal authorization and the right to sign financial documents, including the contract with Ukrkomunbank from the General Director ofIntersplav. At the time, Khristo Kolev was General Director of the American company TBM Holdings, Inc, which controls Ukrkomunbank. In April 2013, the Supreme Economic Court of Ukraine did not consider that there was a conflict of interest in the transaction and refused to recognize the agreement as null and void despite statements pronounced in several courts-of-law by state representatives that “there were signs of contracts being concluded for the purpose of alienating property, thus leading to the bankruptcy of the plant”. The procedures for cessation of the factory are still ongoing and, apparently, all of Intersplav property will be transferred to Ukrkomunbank.

Yefremov’s Industrial Group includes the Krasnolutsky Machine-Building Plant LLC, which is 100% owned by Khristo Kolev and is registered at the address – 18-A V.V. Shevchenko Str. According to Nashi Hroshi (Our Money), this company used to be the trading house of the Krasnolutsky Machine-Building Plant OJSC, which was privatized in 2004 with the support of Governor Yefremov.

Porteks PP (private enterprise), which is also owned by Khristo Kolev and is officially registered at the address – 18-A V.V. Shevchenko Str., won the tender from Lugansk Coal SEDonbas Anthracite SEand the Luhansk Coal and Energy Company SE totaling 412.55 million UAH (around 51.57 million US) from April 14, 2011 to January 28,2014 The authorized capital of Porteks SE amounts to 100 UAH (around 12.5 US).

The Role of the U.S and Individual Financial Sanctions

Ukrainians around the world appeal to the EU and the U.S. to use individual financial sanctions against those who support the Yanukovych regime and the beginning of dictatorship in Ukraine. It is namely the U.S. that is expected to make the most decisive steps with regard to freezing the assets of Yanukovych’s associates and blocking their accounts and transactions in western countries.

We have shown how Oleksandr Yefremov, Chairman of the Party of Regions, has been using the American holding company TBM Holdings, Inc in Nevada as a front for his business interests. In particular, the U.S. company is directly related to artificial bankruptcy schemes involving the largest industrial enterprises in Luhansk Region. The Bulgarian citizen, Khristo Kolev, CEO of the American company, is involved in the ownership structure of several companies belonging to Yefremov’s Group, which win billion-UAH contracts for public enterprises on the verge of bankruptcy through dubious tender contracts.

In this regard, we ask the U.S. government to immediately conduct an audit of TBM Holdings, Inc with respect to its terms of involvement in money laundering schemes organized by higher Ukrainian political personalities. At the time of our investigation, TMB Holdings, Inc assets were to be held in custody. We ask that the financial institutions in the EU and U.S. pay special attention to transactions made through Ukrkomunbank.

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MYKOLA AZAROV

For the attention of the Austrian Financial Police. Vienna based companies of Azarov’s wife

Sergii Leschenko, Ukrainska Pravda, Thursday, the 30th of January 2014, 06:14 (http://www.pravda.com.ua/articles/2014/01/30/7011979/)

A lie of the Prime Minister Mykola Azarov about the same sex marriage made us start wondering what his family was up to since they were not afraid of sodomy and traveled to much hated Europe.

Last year in December, Azarov, talking in front of forcefully organised Antimaidan crowd, decided to contest all benefits of the European integration. As the head of the executive power pointed out, one of the conditions to introduce a visa free regime was the legalization of the same sex marriage in Ukraine:

–        These so-called (opposition) leaders are telling fairy tales during their public appearances: once the agreement is signed, we will have a visa free travel to Europe. This is not true! We have to fulfill a whole host of conditions. Do you know what kind of conditions? We have to legalise the same sex marriage. Is our society ready for that?

In reality, the list of the EU conditions did not have any mentioning of the same sex marriage. By telling fairy tales to the electorate, (the speech of Azarov was broadcasted by the First National TV Channel), he reached the limit of cynicism.

Moreover, in addition to a lie about the same sex marriage, one can add a fact that Azarov’s family got legalised in Austria, where the same sex marriage is also legalised.

While telling these myths to his electorate, Azarov is trying to avoid any mentioning of the other side of his family life taking place in the calm streets of Vienna. Earlier the author of this piece published articles on the real estate of Azarov’s son in the Austrian capital and on the Ukrainian state’s budgetary support provided to Azarov-junior’s Austrian company.

Neither Azarov, nor his son, who is the People’s Deputy, commented on these examples of double standards. The Prime Minister ignored questions related to Vienna roots both at the press conferences and on Facebook.

Taken the exacerbation of the situation in the country, Ukrainska Pravda figured out that the family of the Prime Minister has a place to flee to – and it is not a depressive town of Slovyansk, represented by Azarov-junior in the Parliament, but wealthy Vienna, where they not only own real estate, but run a fully fledged business.

The head of the Ukrainian government and the leader of the Party of Regions has a single son Oleksiy Azarov, married to Lilia Fathulina, now Azarova. Therefore, Lilia Azarova is the only daughter-in-law of Mykola Yanovych (Azarov).

There is no official information about this lady. Ukrainska Pravda managed to get the autobiography of Oleksiy Azarov, submitted to the Central Electoral Commission (CEC) in 2012.

According to this official document, Lilia Azarova has the most popular profession among the wives of the Ukrainian politicians – she is a “housewife”. The declaration submitted in 2011, which Azarov-junior was forced to publish on the CEC website , states that during 365 days his wife had not received a single penny of revenue, neither in Ukraine, nor abroad.

Autobiography

I, Azarov Oleksiy Mykolayovych, was born on 13 July 1971 in Kaluga, Russia. I am a citizen of Ukraine and I have been living here since 1985.

Higher education: in 1987-1992 I studied at Lomonosov State University in Moscow, Department of Geophysics, Faculty of Geology.

In 1994 I graduated from the Ukrainian Academy of Foreign Trade, Department of International Law, and received a Diploma of a lawyer specialised in international law. In 2001 I defended the dissertation on the Special Features of the Ukraine’s Entrance to the WTO.

Professional activity:

In 1993-1995 I worked as the leading engineer of the commercial sector, and in 1993-1995 – as a deputy Executive Director at the Coordination Council of the heads of enterprises and organisations of Donetsk.

In 1996-1997 I was the head of the Donetsk territorial department at the State Securities and Stock Market Commission.

In 1997 I worked as the leading specialist of the sector on issues of privatization at the Apparatus of the Cabinet of Ministers of Ukraine, in 1998 I was transferred to take the position of the leading specialist on the issues of privatization and corporate management at the Department on Real Estate, Entrepreneurship and Constructive Policy of the Apparatus of the Cabinet of Ministers of Ukraine.

In 1998-1999 I held the position of the Deputy Head of the Trade and Economic Mission at the Embassy of Ukraine in Finland under the auspices of the Ukrainian Ministry of Foreign Economic Affairs and Trade.

In 2000 I held the position of the Deputy Head of the Trade and Economic Mission of the Embassy of Ukraine in the Swiss Confederation; I was also a part of the Permanent Mission of Ukraine, Department of the United Nations and other international organisations in Geneva.

In 2000-2001 I was the First Secretary, and then a Councilor at the Permanent Mission of Ukraine, Department of the United Nations and other international organisations.

In 2001-2006 I was the Senior Lecturer in law at the College of the Ukrainian Academy of Foreign Trade.

Since 2007 I have been serving as a Director of the International Fund of Investment Promotion.

I have the 6th rank of the state servant.

Civic activity: since 2012 – a Head of the ‘Nash Region’ (Our Region) civic organisation, a member of the Party of Regions.

Married.

Family composition:

Wife – Azarova Lilia Eduardovna, born on 30 March 1976, housewife;

Older son – Azarov Dariy Oleksiyovych, born….2002;

Daughter – Azarova Alyona Oleksiivna, born….2007;

Younger son – Azarov Mykola Oleksiyovych, born….2010.

Residence address: Malopidvalna st.12/10, apt.30, Kyiv 01034.

Contact phone number: (050)…..

Was never involved in a lawsuit.

30 July 2012

Azarov Oleksiy Mykolayovych                                            (signature)

This is an official legend for the electorate of the Party of Regions.

And here is another side of the story.

According to a no less official registry of the legal persons on the territory of Austria, the wife of Oleksiy Azarov is an owner of a whole net of the enterprises on the territory of the Western European country.

The first company is, Publishing Deluxe Holding GmbH, declared to be dealing with publication of the newspapers and magazines.

Ukrainska Pravda received an excerpt on the company owners and its latest balance account. Thus, the daughter-in-law of the Prime Minister is the Director and owner of the 50% of the capital of this Austrian enterprise. The company was founded in August 2011 by a married couple, Aleksandra and Stefan Burgesmeir, and their neighbour in the 18th district of Vienna, Lilia Azarova, joined the company on 1 March 2012.

Not only has she become one of the Directors, she also contributed UAH half a million to the statutory capital of the company (i.e. Euro 50,000). Nevertheless, two months before that, on 31 December 2011, according to the declaration of Oleksiy Azarov, his wife did not receive any income.

Lilia Azarova de-facto saved the Publishing Deluxe Holding GmbH, as in the end of 2011 the company had a negative balance of Euro 49,000. Thus, Azarova’s contribution of Euro 50,000 corrected this situation.

The balance of the enterprise has an interesting reference to ‘Acquired funds’: as of the end of 2011, the document showed Euro 1,206 mln, whereas as of the end of 2012 the sum equaled toEuro 2,114 mln. However, the money was not invested in the assets of the balance, and was indicated as a turnover (Umlaufvermögen) in the form of cash, funds and financial support.

Azarov’s company publishes a ‘Vienna Deluxe Magazine’. It is interesting to see how the publishing house describes the magazine: “Vienna Deluxe Magazine is a glamour Vienna luxury magazine, oriented exclusively on the luxury products, elitist lifestyle and holidays. Our objective is to communicate with an exclusive target group – persons with a very high level of income.”

In order to publish this ‘super-luxury’ magazine, the Publishing Deluxe Holding GmbH created a daughter enterprise, Vienna Deluxe Magazine GmbH. The enterprise was created at the same time when Lilia Azarova entered the statutory capital of the parent company. As Vienna Deluxe Magazine GmbH is wholly owned by its parent company, it means that the Prime Minister’s family has a 50% stake in it.

According to the information available at Vienna Deluxe Magazine website, similar magazines for the wealthiest people are published by the holding at the French Riviera, Courchevel, Dubai, Saint-Moritz, Geneva, Zurich, Paris, Munich and South Africa. A part of these magazines is published by another Azarov’s company, Media Deluxe GmbH, wholly owned by the parent company, Vienna Deluxe Magazine GmbH.

Publishing Deluxe Holding GmbH and related Vienna Deluxe Magazine GmbH, as well as Media Deluxe GmbH are located at Singerstraße 16/4, in the premises of the luxurious Broyner Palace.

Garda Handels und Beteiligungs GmbH is also registered at this address. This company owns the Donetsk based ‘Metalist’ factory, which is also in the sphere of interests of Azarov family: the Prime Minister’s daughter-in-law worked as a Director of this factory until 2012, and the factory wassubsidised by the Ukrainian budget.

However, the publication of magazines for the wealthiest and managing companies, owning Ukrainian factories, is not the only area of activity of Oleksiy Azarov’s wife of in Vienna. She is also the sole proprietor of the P 12 Galerie und Kunsthandel GmbH, a company that owns the P-12 art gallery in Vienna located at Parkring 12/Top 12/Top 8.

The previous owner of the gallery was an Austrian lawyer Fridrich Bubla, who is a member of the Supervisory Board of the Austrian company SLAV Handel, Vertretung und Beteiligung AG, belonging to…Kluyev brothers. During these two years the stake of Bubla went from 100% to zero, however he l is still mentioned in a list of the gallery owners.

And now the most interesting part. ‘Coincidentally’, the Vienna office of the Liechtenstein based P&A Corporate Trust headed by Reinhard Proksch shares the same building with the gallery. Reinhard Proksch and his trust were the ultimate owner of the Mezhygirya residence until recently and are still the major stakeholder in the solar business of Kluyev brothers.

During the last weeks all aforementioned companies were within a purview of the Ukrainian activists, who were organising strikes in front of the Vienna offices of Azarovs and Kluyevs, as well as initiated the case to deprive Mr Proksch of the lawyer’s license on the territory of the United States. Besides, after the appointment of the new Foreign Minister of Austria, the Austrian government started paying more attention to the information related to money of the civil servants of the Party of Regions, who use these funds to legalise themselves in the West while telling fairy tales to the electorate in Ukraine.

P.S. During this month the Deputy Oleksiy Azarov did not respond to any questions regarding the Austrian business of his family. The Apparatus of the Verkhovna Rada (the Parliament) refused to provide the last income declaration of Azarov-junior referring to absence of his consent to make this information public.

VICTOR YANUKOVICH

Who is Ukrainian President Victor Yanukovich and why he must go

A very good overview about the “system Yanukovich” and how he ruined Ukraine by transfering national property into his pockets and into the pockets of his friends gives this article from  http://yanukovich.info/. And this started in the time befor Yanukovich declared war to the Ukrainian people.

The authors of this website support the open call to the free world:

Yanukovich’s Assets

Open call of the representatives of Ukrainian civil society to leaders of European countries, the United States of America, the European Union and their law-enforcement agencies and financial institutions.

We believe that the authoritarian regime of President Viktor Yanukovych has been fueled by proceeds of corruption laundered via the international financial system through the network of shell-companies and professional intermediaries.

We consider it unacceptable to use the international financial system to support the Yanukovych regime, which violently disperses peaceful demonstrations, organizes bloody beatings of unarmed people, and holds kangaroo courts, that throw innocentpeople in jail.

Pursuant to the international anti-money laundering standards of FATF, implemented in the EU Directives and the USA PATRIOT Act, we request the following:

1. Law-enforcement agencies in the EU and the U.S.: immediately freeze the accounts of Viktor Yanukovych, his son Oleksander and the companies of which they are the beneficiaries. Freeze correspondent banking accounts, used by business structures and affiliated financial institutions of the Yanukovychs to get access to the world finance market.

2. Financial institutions in the EU and the U.S.: terminate serving businesses, which are believed to belong to Viktor Yanukovych and his son Oleksander Yanukovych, and their relatives and associates.

Below is the detailed description of assets, which belong to Viktor Yanukovych and his son Oleksander Yanukovych, who has built his business empire with the help of his father’s abuse of power. Included is a list of companies, which should be blocked from accessing the international financial system.

This description is not complete and will be updated through ongoing efforts by civic activists, lawyers, analysts and investigative journalists.

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Victor Yanukovych

Mr. Viktor Yanukovych was born in 1950 in Yenakievo, Donetsk oblast. As a minor he was convicted in 1967 for robbery, and later in 1969 for assault. These convictions and court papers miraculously disappeared and his political career successfully took off. Yanukovych served as the Governor of Donetsk Oblast from 1997 to 2002. Subsequently he was Prime Minister of Ukrainefrom November 21, 2002, to 31 December 2004, under President Leonid Kuchma, and he was an unsuccessful candidate in the2004 presidential election, ultimately losing to Viktor Yushchenko. Yanukovych continued to lead his party, the Party of Regions, after the 2004 election, and he served as Prime Minister for a second time from August 4, 2006, to December 18, 2007 under President Yushchenko. On March 3, 2010, Yanukovych transferred leadership of the party to Mykola Azarov. Yanukovych won most votes in the first round of the January 2010 presidential election, and faced Yulia Tymoshenko in the second round of the election. Yanukovych won the second round of the election by 3% over Yulia Tymoshenko’s party.
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  1. As Prime Minister of Ukraine, Mr. Yanukovych officially lived in a penthouse apartment (384 sq m) in a modern building in Kyiv, located at 10 Sichnevogo Povstannya Street, apartment 8. Then he sold that apartment to Mr. Sergey Kluyev (MP form the ruling party, head of the Parliamentary Committee on Banking Regulations and member of the Supervisory Board of the National Bank of Ukraine). The apartment was sold for the unusually high price of $7 mln USD (the former ex Prime Minister of Ukraine, Mr. Lazarenko, who was convicted in the US for money laundering, bought his sprawling 20-room home with a swimming pool, tennis court and a significant land in the city of Novato, California, US for $6.75 mln USD in 1998). The price for Yanukovych’s penthouse was ridiculously high. Though information on this phenomenal real estate deal was publicly available, the Prosecutor General Office did not find it suspicious.
  2. Since 2003 Mr Yanukovych has resided in the former state residence — a 343.4 acre estate — Mezhygirrya. This estate was privatized in a chain of murky transactions, which were unsuccessfully disputed in court. The President of Ukraine claims that he owns a 620 sq m house and 4.2 acres of land at Mezhygirrya, and that the rest of the land belongs to the Charity Foundation “Vidrodzhennya Ukrainy” and the Tantalit LLC company, which bought it in 2007. Tantalit LLC was founded by a UK-based firm Blythe Europe, Ltd and run by Mr. Reinhard Proksch. Interestingly, Mr. Sergey Kluev sold his prosperous business Activ Solar in July 2009 also to Mr. Reinhard Proksch, at whose home address P&A Corporate Trust — the current official owner of Activ Solar – is registered. Incidently, Activ Solar is a successful monopoly in producing solar energy in Ukraine with more than 20 solar energy plants. Since Sergey’s brother Andriy Kluyev — a co-owner of Activ Solar — held the office of the Vice Prime Minister of Ukraine, Active Solar has enjoyed generous state bank interests-free credits, tax exemptions, unprecedented low prices on land leases (3% of the value per year), еру duty free import of equipment, and the highest green tariff in Europe, enabling Active Solar to become a monopoly in the solar energy sector in Ukraine. Moreover, even the European Union’s direct budgetary support funds were spent on connectingActiv Solar plants with electricity system in 2011 instead of the energy-saving work demanded by the EU. The EU did not approve of such support for Activ Solar using its funds and as a result halted its direct budget support to Ukraine. In 2008 Tantalit signed a 49-year at the lowest price possible, i.e. $10 USD per 0,25 acre per year, and started to develop Mezhygirrya, turning it into a world-class luxury estate. In just three years, the two former old state dachas and shabby service quarters located in Mezhygirya’s pristine forest were turned into an estate which encompasses one huge super-luxurious 5-story palace, two 3-story guest houses, a golf course, a yacht club, a helicopter pad and hangars, a racetrack with horse stables, tennis courts, etc. The interior of the Mezhygirrya Palace is exeptionally posh; for example, it holds a several crystal lamps running $97,000 each, gilded toilet bowls and mahogany wall panels. Neither Tantalit’s revenue documents nor Blythe Europe’s tax reports ever provided a clue to the origin of money invested in the development of Mezhygirya. In 2010 the Austrian firm Euro East Beteiligungs GmbH decided to buy the property of Charity Foundation “Vidrodzhennya Ukrajiny” (honka, sauna and SPA centre)  for 1,2 bln UAH (approximately $150 mln USD). This price does not include the golf club, zoo, horse club, yacht club, landing platform, guest houses, dormitory, electric stations, or administrative building, etc.
  3. In September 2013, Mr. Reinhard Proksch suddenly decided to sell Mezhygirya to Mr. Sergey Kluyev, who became an honorable host of the head of his political party Mr. Yanukovych. Interestingly, Mezhygirya is surrounded by a 5–6 meter fence and has no public access. It is guarded by the special police force BERKUT, and nobody except Mr. Viktor Yanukovych and his family is allowed to enter. Thus far, the only person with control over access to Mezhygirya is Mr. Viktor Yanukovych. He is the beneficial owner of a luxurious estate located in pristine forest on the bank of the Dnipro River.
  4. Mr. Viktor Yanukovych is a big fan of hunting and in order to satisfy his passion to hunt, he gained exclusive access to more than 74 131.6 acres of Suholuchchya forest located in the Dnipro-Teteriv forestry.  During Viktor Yuschenko’s presidency, with the support of then Head of Kyiv Oblast Administration Mrs. Vira Yluanchenko, Sucholuchchya forest, which had two state residences – “Ostriv” and “Akaciya” was privatized. At first it was transferred from the Cabinet of Ministers to the State Forestry Committee, however the 42 acres were then bought by Dim Lisnyka LLC, allegedly to develop green tourism in Ukraine. As soon as Dim Lisnyka LLC rreceived all the papers, it put a fence around  entire Suholuchchya forest property and the special BERKUT police troops (which were used to beat up peaceful demonstrators on Bloody Saturday, November 30, 2013 in Kyiv) began protecting it. Only people with special permits can get access to the Sucholuchchya forest. The founders of  Dim Lisnyka LLC are Ivan Tokhtamych and  Astute Partners Ltd, with  Mr. Reinhard Proksch serving as Director. Ivan Tokhtamych is also of the Director  of the Society of Hunters and Fishermen “Kedr”, which is located at the Mezhygirya estate. This Society was founded by the ex-minister of energy Mr. Yuriy Boyko. Astute Partners Ltd is affiliated with Euro East Beteiligungs GmbH, which built the yachting and horse facilities at Mezhygirya.  Suholuchchya was leased for 49 years based on the decision of the Vyshgorod Local Council  for slightly more than $3,000 USD per year. In 2011 Dim Lisnika LLC and the Suholuchchya hunting forest were bought by MAKO Holding, which belongs to Oleksander Yanukovych. As a result, President Viktor Yanukovych has an exclusive access to the 74 131.6 acre of pristine forest, which he uses for hunting.
  5. To satisfy Mr. Viktor Yanukovych’s passion to be above everybody else, the company Centravia LLC leased an Augusta 139 helicopter and a Falcona 900 plane to the state aviacompany ”Ukraine” for 7.5 mln UAH ($937,500 USD) and 8 mln UAH ($1 mln USD) respectively,  paying with the tax-payers money. As of 2011 Centravia LLC had two founders, Mt. Pavlo Kovaliov from Donetsk and Aero Holdings Ltd B.V.I. When Centravia LLC was founded in 2007, its founders were Ukrkyivresurs and Volodymyr Lytovchenko, who also had a minor share in Tantalit LLC.
  6. Mr. Yanukovych also writes books and judging from his Income Declaration he is probably the most successful writer in Ukraine and in Europe. In 2011 and 2012 the Dontesk printing house Novyi Mir paid him approximately $4,56 mln USD. Though Mr. Yanukovych’s five books were published in different publishing houses such as FolioValrus-design,Printing House of Dmitriy Burago and Mandelbaum Verlag (where Mr. Yanukovych actually paid for his publications), all honoraria were paid by the Donetsk base printing house, which does not in fact publish books. What is more, Mr. Yanukovych’s book “Opportunity Ukraine” was  plagiarized and was never put on the market. This success story of book-writing evokes more the money laundering schemes of Meyer Lanski than successful business management practices.
  7. The southern coast of the Crimea hosts four government villas — «Muholatka» № 9 and «Dawn» № 1, № 3, and № 6, which have been renovated at public expense over the last three years. The interiors were upgraded and furnished with gold Italian furniture, English porcelain and other luxuries, such as a heated marble massage table which cost 600,000 UAH. Near two of the government villas, helipads were installed. There are two other private estates also in Crimea, which, after ownership over them was transferred to Yanukovych, were renovated by LLC Nord 2007. As a result of this investment, their value increased, which then gave Yanukovych the right to buy them for himself. However, the estates were not enough and Viktor Yanukovych decided to privatize Cape Aya, — formerly the resort of Ukravtodor (State Road Service) which approximately equals in area the Kingdom of Monaco and includes beautiful wild beaches and vast forests, and lies at the foot of the mountain Aya. All-together, the area of the estates is 8.6 acres. In the summer of 2007 the 8.6 acre property (including the park) was privatized for 6.36 million UAH. Officially, the Simferopol based company Arktyr-Krym LLC assumed ownership. The main founder of the company, according to the tax authorities at the time, was Ukrkyivresurs LLC which contributed almost 7 million UAH (less than $900,000 USD) to the joint capital, which was used to purchase the property. Ukrkyyivresurs also founded of Kyiv Universal Service LLC, which serves Mezhyhirya, providing gardeners, janitors, cooks and groomsmen. Ukrkyyivresurs LLC was also the founder of SPS-group LLC, an entity which purchases decorations and furniture for the club house on Mezhyhirya property, including palatial chandeliers and carved mahogany wall panels. Ukrkyyivresurs has the same address as  Dim Lisnyka LLC, which privatized Suholychchya, and was later bought out by Oleksandr Yanukovych. Subsequently, Ukrkyyivresurs LLC sold the Cape Aya estate to Nord 2007 LLC, which also privatized the state landmark, a historic villa Tea House in Massandra, and privatized the two other historical villas Cameo and Miro Mare in Simeis. Also, in 2008, Yanukovych expanded his ownership on Cape Aya. In accordance with Sevastopol City Council ruling #4355 on 20.05.08, in connection with a voluntary refusal, the right was suspended to regular use of the state rehabilitation Center for the Liquidators of the Chernobyl Plant, a parcel totaling 10,2 acres located in the Batiliman tract in the Sevastopol area SCC 33. It was then leased to Nord-2007 LLC for 25 years. Today, Nord 2007 LLC belongs to an unknown Cypriot company Leolita Trading Ltd. But all of the construction work is being done under the supervision of Mr. Olexander Yanukovych and no one except the family of the President has access to the Cape Aya estate according to reports. On the site of the Cape Aya estate they are now buildingan incrediblely luxurious palace which is even more audacious than Mezhyhir’ya.

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All the above would not be possible if Ukraine were a member of the EU. Mr. Yanukovych would certanly feel more comfortable in the company of Mr. Putin (13 years in power), Mr. Lukashenko (19 years in power) or Mr. Nazarbayev, (19 years) all of whom also often confuse the wealth of their nations with their own.