“Ukrainian companies are actively turning to Latin America and Africa. Among other destinations, exports have grown by 277.4% to Panama, 1,902% to the Seychelles, 3,177.8% to the Marshall Islands, and 28.9% to the British Virgin Islands,” the Forecast claims.
Analysts also highlight that Ukrainian exports to the friendlier fiscal jurisdictions often used by Ukrainian business owners, such as the Netherlands and Switzerland, have grown 66.2% and 20.6% respectively.
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“Belize is the most popular offshore destination. Exports of goods have soared 132,377.9% to this country, exceeding Ukraine’s exports to countries like Germany, the UK and Spain,” the report says.
Analysts believe that the government does not have sufficient leverage to influence the situation at this point. Despite arrangements to share tax information and plans to sign the relevant agreements, exports that may qualify as fake continue to grow.
“The new system of transfer pricing control could give the government tools to control the most notorious contracts, thus boost budget revenues. But the efficiency of the new system will only be known once uniform rules are set for all export players. It will also depend on court practices,” the Forecast projects.
According to earlier reports, Belize-based offshore companies surfaced in a number of scandalous asset redistribution and public procurement deals in Ukraine.
Among other things, Ukrainian insulin plant, Indar CJSC, underwent a raider attack with the police helping the raiders in July 2011. Subsequently, the Commercial Court deemed the transfer of the plant’s shares to the Belize-based Storke Holdings Limited illegal.
Two other Belize-based offshore companies, Magic Worldwide LTD and Aida Holding Ltd, took part in the tender to supply two offshore mobile drilling platforms for Naftogaz. Both companies lost it.
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