Business Week: Loss of Iraqi contract, crypto taxes, billions in corruption

A Ukrainian company is losing a billion-dollar gas field in Iraq due to "unjustified" actions by the authorities. Meanwhile, the Rada approved a 18% tax on cryptocurrencies, and the Antimonopoly Committee continues to fine companies for illegal business concentrations.

A new water pipeline worth 6.3 billion hryvnias has finally been launched in Mykolaiv, replacing the system destroyed by the Russians. However, demining agricultural land may take 83 years at the current rate.

Corruption scandals continue: the SBU detained a former top tax official for money laundering of 1.5 billion hryvnias. Meanwhile, the tax service has targeted restaurants with suspiciously low monthly revenues of up to 50,000 hryvnias.

Read the week's highlights in the business news digest. LIGA.net over the past week.

Ukraine is losing a strategic oil field in Iraq

The Iraqi government sent The Ukrainian company "Ukrzemresurs" received notification of the termination of the contract for the development of the Akkas gas field in the Anbar province. The Ukrainian company strongly condemned this decision as illegal.

"We accepted the challenge of working in a region where no international company has operated since 2014, despite the fact that many leading energy corporations refused to undertake this project," said Ukrzemresurs.

The company signed the contract in April 2024 after it was relinquished by the Korean company Korea Gas Corporation.

Ambitious plans envisioned the extraction of 1 billion cubic meters of gas per year within the first two years, and 4 billion cubic meters after four years. The company claims that it faced an aggressive information campaign in the media, political pressure, and restricted access to the field due to the presence of paramilitary groups. The owner of "Ukrzemresurs" is Olga Yarmak, who is a member of the supervisory board of the gas production company from the group of Mykola Rudkovsky.

AMCU punishes for concentration: elevator giants will pay millions

Antimonopoly Committee completed the investigation cases concerning the merger of Ukrainian elevator manufacturers. PJSC "Karlivsky Machine-Building Plant" (KMP) has been fined almost 9.74 million UAH for concentration without the regulator's permission. The case concerns KMP's acquisition of control over a significant portion of the assets of LLC "Variant Agro Bud".

In the past, these companies were the closest competitors in the elevator equipment market. Since 2022, they have begun to position themselves as a united company under the brand of the Karlivsky Machine-Building Plant. However, the AMCU (Antimonopoly Committee of Ukraine) received only an application for coordinated actions through a non-compete agreement, not for concentration.

The regulator determined that the concentration did not lead to market monopolization, therefore it granted permission post facto, but fined the company for procedural violations.

SBU detained a tax evader involved in billion-dollar schemes

SBU detained former deputy head of the State Fiscal Service of Ukraine is suspected of creating a large money laundering center. The message is illustrated with a blurred photograph of Yevhen Bambizov, who oversaw the tax sector in 2018-2019.

According to the investigation, after his release, he worked as a lawyer and, together with two accountants and the head of an affiliated company, created a powerful money laundering center. They created about 100 companies: 14 importers and over 80 transit companies, most of which existed only on paper.

Between July 2024 and May 2025 alone, 127 million hryvnias were deposited into the accounts of one controlled enterprise for fictitious supplies, resulting in an underpayment of VAT of 21 million hryvnias. In total, the case involves the possible laundering of over 1.5 billion hryvnias. Those detained are expected to be charged with tax evasion and money laundering, with a penalty of up to 12 years imprisonment.

Construction of a strategic water pipeline has been completed in Mykolaiv

The company "Autostrada" announced that completion of construction a new 68-kilometer main water pipeline to Mykolaiv worth 6.3 billion hryvnias. It will replace the system destroyed by Russian troops in April 2022. Prime Minister Yulia Svyrydenko personally inspected the completed facility.

"In two weeks, fresh water will completely replace saltwater in all the city's systems," Svyrydenko promised.

The new water pipeline will supply Mykolaiv with 120,000 cubic meters of water per day, and the integrated irrigation systems will additionally provide farmers with up to 50,000 cubic meters per day.

To protect against Russian strikes, the pumping stations were placed in monolithic reinforced concrete structures, and the substations were laid underground. After the appointment of a balance holder and connection to a permanent power supply, the system will switch to fully automated mode.

De-mining for 83 years: The Audit Office raises the alarm

The survey and demining of agricultural land contaminated with explosive ordnance in Ukraine is proceeding at a very slow pace. Clearing agricultural land contaminated with ordnance could take over 80 years. This is statistics published by the Accounting Chamber.

9.85 million hectares of agricultural land in ten regions are inaccessible for safe use – this is almost a quarter of the total area of all agricultural land in Ukraine. Since 2022, only 7,750 hectares (0.08% of the contaminated area) have been demined, and another 403,000 hectares have been returned to cultivation in a simplified procedure.

"At this rate of demining, it will take approximately 83 years to completely clear agricultural land in Ukraine of hazardous objects and properly return it to cultivation," the auditors stated.

The reasons for the delays are shortcomings in planning, the lack of a unified regulatory framework, and weak coordination between responsible institutions.

Tax authorities are hunting down "shadow" restaurants

Some restaurants, cafes, and bars show Unrealistically low revenues – up to 50,000 UAH per month. The State Tax Service conducted an analysis of the activities of catering establishments and identified economically unjustified indicators.

According to the tax authorities, such revenues do not cover even the minimum costs: salaries for three employees with a salary of 8,000 UAH, an alcohol sales license, the purchase of products, and the payment of taxes. Some restaurateurs declare only cashless transactions or meager cash payments up to 5%.

"In conclusion, it is obvious that with declared revenues of up to 50,000 UAH, no establishment could realistically function. This harms not only the state budget, but also the business itself, as risky establishments fall under increased scrutiny," the tax service warned.

Earlier, Danylo Hetmantsev noted that almost all restaurants in Ukraine operate as sole proprietorships – there are 68,000 registered sole proprietorships and only 3,200 companies.

The Council approved the taxation of virtual assets

The Verkhovna Rada (Ukrainian Parliament) at its meeting on Wednesday adopted as a basis a draft law amending the Tax Code to regulate the circulation of virtual assets in Ukraine. 246 members of parliament voted in favor of the draft law. The initiator of the document is the head of the tax committee, Danylo Hetmantsev.

The draft law provides for taxation of income from transactions with virtual assets at a rate of 18% from 2026. Exchanges between cryptocurrencies and sales up to one minimum wage will not be taxed. For assets acquired before the law comes into effect, a preferential rate of 5% will apply in 2026.

"The draft law will undergo many changes before the second reading, so I don't see the point in elaborating too much on what it's about," warned Yaroslav Zheleznyak, First Deputy Chairman of the Tax Committee.

Providers of virtual asset services will be required to register and submit annual reports on their operations.

The Lobbyists Registry has started operating in Ukraine

In Ukraine, starting September 1, 2025 has come into force has entered into force has become effective has taken effect the law on lobbying has been passed and the Transparency Registry has started operating. This was announced by the National Agency for Prevention of Corruption, which oversees the new mechanism.

"Either you work openly and honestly, or you have no right to influence the decisions of state authorities in your own interests or the commercial interests of your beneficiaries," said Viktor Pavlushchyk, head of the NAPC.

Previously, influence on state decision-making could occur behind the scenes and indirectly.

The status of a lobbying entity can be obtained by individuals with full legal capacity, Ukrainian legal entities, and foreign companies with representative offices in Ukraine. The register has a public part and an electronic cabinet for registered users.

The registry became the first information and communication system that, with the assistance of the State Service for Special Communication and Information Protection of Ukraine, passed security authorization according to the new standards established by the legislation of Ukraine.

Russia has a record number of loss-making enterprises

In the first half of 2025 share of loss-making enterprises In Russia, it reached 30.4%, the highest figure since the 2020 pandemic. At that time, 35% of Russian companies were operating at a loss.

In total, about 43,000 Russian companies received profits totaling over 18.4 trillion rubles, while 19,000 organizations declared losses of over 5 trillion rubles. Freedom Finance Global analyst Vladimir Chernov emphasized that in developed countries, the share of loss-making companies is 10-20%.

The largest losses are recorded in coal mining, water supply, scientific research, and passenger transportation – up to half of the enterprises in these sectors operate at a loss. Problems also extend to construction and automobile manufacturing, where competition from Chinese manufacturers is particularly strong. Sergey Katirin, President of the Chamber of Commerce and Industry of the Russian Federation, predicts a further increase in the share of loss-making enterprises.

UPG is buying out "Privat" gas stations

The company "Ukrpaletsystem" (UPG gas station network) on Thursday, September 4, received permission The Antimonopoly Committee is taking over the lease of another batch of gas stations associated with the "Privat" group.

This concerns 75 gas stations registered to 14 limited liability companies, the ultimate beneficial owner of which is Yuriy Kiperman. This is already the fourth batch of "Privat" gas stations for UPG this year – in July the company received permission to lease 34 gas stations, then another 47, and in August – an additional 46.

AMCU Chairman Kyrylenko previously stated that these assets could allow UPG to become the third key player in the fuel market, alongside WOG and OKKO. The company's strategy involves a phased acquisition of assets: first leasing, then ownership.