An investigation has unveiled troubling practices leading to billions vanishing from Ukraine’s budget. While the government strives to ensure that funds from various procurements, especially in defense, remain within the country to support workers’ salaries, taxes, and the development of local production, the Kонотопський scheme demonstrates a different reality. Through intermediary companies based in Estonia and Hong Kong, Kонотопський’s firm, “Stream Techno,” has been implicated in a system that diverts funds out of Ukraine.
This method allows for inflated pricing abroad, resulting in significant consequences: the state overpays for these procurements, much of the profit is retained by foreign companies, and Ukraine foregoes millions in tax revenues. Consequently, this scheme diminishes the financial resources available for crucial state needs such as the military, healthcare, and education. Detailed findings along with infographics illustrating this issue are available in the full report of our investigation.
