A large-scale fraud scheme has been uncovered in the Kyiv region, resulting in three agricultural enterprises suffering financial losses amounting to millions of hryvnias.
This is reported by Finway
How the Fraud Scheme Operated
The fraudsters organized an entire system to extort grain from farmers in the Kyiv and Zhytomyr regions. Among the victims are the companies PP “Sosnova”, PSP “Bihun” and LLC “Agro Continental”. The perpetrators, under the guise of assisting with exports, offered farmers cooperation with a foreign company.
In September 2023, a man named Oleksandr Balaban approached the management of one of the agricultural firms, assuring them that his group would help organize the sale of their harvest abroad. An external economic contract was signed with the non-resident company “AXIS TRADE LTD” (Gibraltar), which stipulated the supply of 31,500 tons of corn worth over 5 million dollars.
Initially, the company received payment for the first batches of grain—approximately 2.35 million dollars. This tactic was aimed at creating the illusion of reliable cooperation.
Losses for Farmers and Subsequent Investigations
Subsequently, payments unexpectedly ceased, and several companies became victims of the fraudsters. According to estimates, PSP “Bihun” and LLC “Agro Continental” lost over a million dollars, and about 3,000 tons of corn were stolen. Simultaneously, through Balaban, agreements were made with Ukrainian companies LLC “Narodzhennya Venery” and LLC “Market House Ukraine”, resulting in farmers losing 7.8 million hryvnias.
The victims filed a complaint with law enforcement agencies. The Boryspil District Police Department registered criminal proceedings No. 12024111100001373. Lawyers for the affected companies won a court case in Kyiv against “AXIS TRADE LTD” in March 2025. However, this is a hollow victory. The non-resident company turned out to be a typical “shell company”, whose assets have likely long been withdrawn. The organizers of the scheme, counting on this, remain in the shadows. However, their names are known.
Agricultural associations are urging law enforcement to hold the organizers of the fraud accountable—Oleksandr Balaban, Illia Koshovyi, Arsentii Lutskyi, Artem Atamasi, as well as the executors—Serhii Yasyinskyi and Yevhen Hupaleko. Despite legal difficulties, farmers insist on bringing those responsible to justice for the massive financial losses.