Pharmaceutical conspiracy: multimillion-dollar “shadow” supplies of Russian medicines exposed in Ukraine
20 August 16:35
The Office of the Prosecutor General, together with the National Police of Ukraine, has exposed an organized group that set up “shadow” supplies of Russian homeopathic medicines to the Ukrainian market during a full-scale war, "Komersant Ukrainian" reports.
According to the investigation, the deal was organized by a Russian citizen, a member of the Russian Academy of Medical Sciences and owner of a large pharmaceutical holding. Back in the early 2000s, he set up a subsidiary in Ukraine with an almost identical name. After the beginning of the Russian aggression in 2014, the holding opened a production base in one of the neighboring European countries, which allowed it to circumvent sanctions and disguise supplies. In fact, there was no production there – Russian drugs were only repackaged and passed off as European.
The scheme involved the founder and director of the Ukrainian company, the head of quality control, the manager of drug registration, and the chief accountant. They ensured the uninterrupted import and legalization of Russian drugs in Ukraine.
Since the beginning of the full-scale invasion, the pharmaceutical company, the official representative of the Russian holding in Ukraine, has not stopped its work, but rather strengthened the disguise of its activities. As a result, Russian medicines worth more than UAH 270 million were sold on the Ukrainian market, part of which went directly to the owner of the pharmaceutical holding in Russia.
According to the prosecutor’s office, among the drugs sold were products made from rabbit droppings, snake venom and crushed honey bee bodies. Their “medicinal properties” have not been confirmed by any international studies, and their use could pose a health hazard.
During the searches in Kyiv, law enforcement officers seized more than 40 boxes of documents, computer equipment and cell phones with correspondence in which representatives of Ukrainian and Russian companies discussed profit sharing, sanctions avoidance, pricing and advertising. A 700-square-meter building owned by the owner of a Russian holding company and used as an office and warehouse was also seized in the capital.
Currently, the organizer and all participants of the scheme have been served a notice of suspicion of conducting business activities in cooperation with the aggressor state, which was carried out as part of an organized group (Part 3 of Art. 28, Part 4 of Art. 111-1 of the Criminal Code of Ukraine). Additionally, the state registration of 11 medicines owned by the Ukrainian subsidiary was canceled.
The pre-trial investigation is ongoing.
As a reminder, the pharmaceutical market in Ukraine remains one of the most profitable in Eastern Europe.
According to analytical agencies, its volume is estimated at over USD 4 billion annually. At the same time, the issue of the origin of medicines became particularly acute after 2014, when Ukraine restricted imports of products from Russia.
Despite this, Russian manufacturers have repeatedly tried to circumvent sanctions through shell companies in third countries. In 2022, the Ministry of Health of Ukraine already canceled the registration of a number of Russian-made drugs, but some products continued to be sold under “European” labeling.
