Deputy Director of the BES Pashchuk told which district of Kyiv is most engaged in shadow trade
22 August 21:03
EXCLUSIVE
The Holosiivskyi district of Kyiv has become the city’s center of shadow import trade. This was stated by Andriy Pashchuk, Deputy Director of the BES, in an interview with the "Komersant Ukrainian" YouTube channel.
The representative of the agency also told media journalists about the biggest challenges in the field of economic security: tax crimes, illegal trade in Kyiv, and the remnants of “roofs” in business. He also talked about how entrepreneurs avoid criminal liability by not paying taxes.
Mr. Pashchuk emphasized that the shadow economy in Ukraine has a pronounced regional specificity. One of the most problematic districts in the capital is Holosiivskyi. According to the official, it is here that there is an active illegal trade in imported goods, which often enter the country without proper customs clearance or are sold in violation of tax laws.
“Holosiivskyi is a marketplace for various goods, including imported ones. We see real problems there that need to be addressed,” emphasized the BES Deputy Director.
“Illegal trade deprives the budget of billions of dollars in revenue and creates unequal conditions for honest businesses, forcing official entrepreneurs to reduce margins or cut costs, including wages and social guarantees.
The “roof” phenomenon: is it returning from the 90s to modern Ukraine?
The so-called “roof” – a system of informal cover for business activities through contacts in the government or law enforcement agencies – remains one of the most painful topics for small and medium-sized businesses. This phenomenon was characteristic of the 90s and early 2000s, but, as Pashchuk acknowledged, some cases related to this phenomenon still occur.
We remember that in Ukraine there was such a phenomenon as a “roof”. There is a certain person in power to whom you can turn and you will not have any problems,” he explained.
Pashchuk noted that although the overall picture has changed due to police reform, the creation of anti-corruption bodies and the digitalization of processes, pressure from dishonest law enforcement officers or officials is still recorded from time to time. The BES, in turn, continues to urge businesses to contact law enforcement agencies and not to agree to informal arrangements.
Indulgence for tax evaders
Andriy Pashchuk called Article 212-4 of the Criminal Code of Ukraine an interesting element of Ukrainian legislation that actually allows businesses to “correct a mistake”. It provides for exemption from criminal liability in case of voluntary payment of taxes to the budget.
This is a kind of indulgence. If an entrepreneur realizes that there have been violations and compensates the state in time, the criminal case can be closed,” he explained.
According to legal and tax analysts, this provision may become an incentive for de-shadowing and will allow businesses to return to the legal field without devastating consequences.
Currently, the Bureau of Economic Security continues to work on identifying and documenting tax evasion, smuggling and illegal production schemes. The BES emphasizes that the efforts are not aimed at a “punitive function” but at creating conditions in which transparent activities will be more profitable than shadow activities.
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Shadow economy in Ukraine: Hetmantsev names the scale and reveals the schemes
In July 2025, the Chairman of the Tax Committee of the Verkhovna Rada of Ukraine, MP Danylo Hetmantsev, estimated the size of the shadow economy in Ukraine at UAH 800-900 billion per year. This statement was made during a speech at the Forbes Money Economic Forum.
The MP noted that 30 to 50% of the country’s economic activity takes place in the shadows, and in some industries this figure reaches 60%. This level of shadowing poses a serious obstacle to economic development, reducing the competitive ability of legal businesses to compete against the backdrop of untaxed income.
Speaking at the same event, Hetmantsev emphasized that de-shadowing the economy could become an important source of funding for the army. According to his forecast, in 2025, the state budget could receive up to $4 billion in revenues from the shadow economy, which is about twice as much as in 2024.
“The economic effect can already be seen: the budget recorded an overperformance of more than UAH 1 billion of this amount,” said the chairman of the relevant parliamentary committee.
“As the scale of the shadow economy is exposed, it is important to note that lawmakers and business representatives are increasingly calling for transparency. In 2025, the amount of taxes paid in the field of Internet services increased by 48%, from UAH 800 million in 2024 to UAH 1.187 billion in the first quarter. This indicates some progress towards legalizing the digital economy.
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