28.01.2025 Business of Occupiers Corruption Ecology

Servants of the People gave the country’s strategic resources to the owner of ATB Butkevich

Совладелец «АТБ» Буткевич покупает конфискованные заводы российского олигарха за 1,9 млрд грн | Украинский Совет Торговых Центров

The falsification of procedures and violation of environmental standards are all part of a large-scale corruption scheme that allowed the Perzhanska Ore Company to illegally obtain a permit for the extraction of beryllium ores within one of the most valuable natural sites in Ukraine – the Polissia Nature Reserve.

Perzhanska Ore Company LLC has become a real “hero” of a corrupt conspiracy that allowed the company to illegally obtain a special permit for the extraction of beryllium ores in the Polissya Nature Reserve, one of the most valuable natural sites in Ukraine. The permit was issued despite a direct ban on any economic activity within the reserve, which is part of the country’s nature reserve fund.

Back in 2019, the State Service of Geology and Subsoil of Ukraine and Perzhanska Ore Company LLC signed Agreement No. 6383, which allowed the company to carry out mining at the Pivnichna and Krusynka areas of the Perzhanska deposit. A few years later, from 2021 to 2024, actual mining began, which led to numerous violations and threats to the environment.

How a group of oligarchs managed to circumvent the law

According to Article 16 of the Subsoil Code of Ukraine, a special permit for subsoil use should be issued only after an auction. However, when the Perzhanska Ore Company LLC participated in the auction, only one application was submitted by the end of the auction period – from the same company. The law clearly states that in this case, the auction is considered to have failed.

Despite this, the special permit was issued without holding an auction. As a result, the company received a permit for subsoil use with a minimal payment, which indicates illegal corruption arrangements that allowed it to reduce the cost of the permit to a minimum.

Violation of the environmental impact assessment procedure

Any activity that has a significant impact on the environment requires an environmental impact assessment (EIA) procedure, which involves a mandatory assessment of environmental consequences. All environmental impact assessment documents for the Perzhanske field were prepared with numerous violations, including:

Falsification of public hearings. Residents of neighboring areas were not properly informed about the planned activities, and announcements were published in local publications with limited circulation, making it impossible for the public to access important information.

Underestimation of environmental risks. The environmental impact assessment report artificially reduced the indicators of air, water, and soil pollution. The potential impact on the flora and fauna of the Polissia Nature Reserve was not properly assessed, and the necessary scientific studies were not conducted.

Despite the clear violations, the Ministry of Ecology and Natural Resources of Ukraine approved a positive conclusion, which allowed the permit to be issued.

Consequences and threats of beryllium mining

A serious threat is not only the fact of mining, but also the underreporting of beryllium production by the company. This allows Perzhanska Ore Company LLC to evade rent and tax payments, thus depriving the state of proper revenues from the use of national resources.

According to expert estimates, beryllium deposits in the Perzhanske deposit are estimated at USD 80-100 billion. However, the company deliberately underestimates the actual production volumes – the actual data is much higher than the declared ones. This allows the company to illegally increase its profits and the state to not receive the due revenues.

Perzhanska Ore Company LLC does not stop there – the company actively violates the environmental legislation of Ukraine. According to the Laws of Ukraine “On Environmental Protection” and “On Environmental Impact Assessment,” beryllium mining should be accompanied by careful monitoring and assessment of possible environmental impacts. However, the company deliberately ignores these requirements, creating toxic waste containing hazardous elements such as heavy metals and radioactive substances.

This waste gets into the soil, water and atmosphere, causing large-scale pollution of aquifers and the death of flora and fauna in the Polissia Nature Reserve. In addition, the company unfairly ignores safety precautions, which endangers the lives of its employees, as there is no personal protective equipment and machinery does not meet safety requirements.

Conflict of interest: Family ties in the Verkhovna Rada

It is worth noting that there is another very important point in the history of this corruption scandal – a conflict of interest. Pavlo Vitaliyovych Yakymenko, the Chairman of the Subcommittee on the Protection and Rational Use of Subsoil of the Verkhovna Rada of Ukraine, is the son of Vitaliy Dmytrovych Yakymenko, one of the founders of the Perzhanska Ore Company LLC.

Pavlo Yakymenko, who, by virtue of his official duties, directly affects the issuance of special permits, was actually involved in creating favorable conditions for his family’s company. This casts doubt on the objectivity of his decisions and is a serious violation of Ukraine’s anti-corruption legislation.

Who is behind the Perzhanska Ore Company?

The ATB-Market retail chain, which serves millions of Ukrainians every day, has a dark side that has remained under wraps over the years. Gennadiy Butkevych, the ultimate beneficial owner of the chain, has long been known not only as a businessman but also as a figure associated with numerous corruption scandals and criminal offenses. Under the guise of the consumer goods market, he organized illegal schemes that led to large-scale losses for the state budget, threats to national security, and even terrorist financing.

In particular, during the presidency of President Viktor Yanukovych, when the ATB chain was gaining momentum, Butkevych established close ties with the Ministry of Internal Affairs of Ukraine. According to some reports, he financed the renovation and arrangement of private estates of the Interior Ministry leadership. This step allowed the businessman to secure protection from inspections and the support of law enforcement agencies to maintain his illegal schemes and financial transactions.

One of the most scandalous facts is ATB’s activities in the temporarily occupied territories of Ukraine in 2014-2017. It is known that the chain of stores continued to operate in the occupation zones, but under other brands. The taxes paid by the company went to the budget of the so-called L/DPR, which directly indicates possible support for terrorism.

Thus, the activities of Perzhanska Ore Company LLC are supported by high-ranking officials from the Ministry of Environmental Protection, the State Service of Geology and Subsoil, and the Verkhovna Rada.

Thanks to the influence of such persons, the company was able not only to obtain a permit for mining in a prohibited ecological zone, but also to ignore numerous laws, violating the principles of environmental protection in Ukraine.

The issuance of a special permit for the extraction of beryllium ores within the Polissia Nature Reserve is not only a corruption violation, but also a serious environmental threat. The process of underground mining can cause significant damage to the ecosystem, water and soil resources, as well as flora and fauna of the reserve.

We have already filed a criminal complaint with a number of law enforcement and regulatory authorities. We are waiting for their response.

 

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