Business news from Ukraine

BAKER TILLY UKRAINE TO AUDIT STATE CONCERN UKROBORONPROM

Baker Tilly Ukraine LLC from the Baker Tilly international audit network, has won a tender to select an auditor of consolidated statements of the Ukroboronprom state concern.
According to the ProZorro platform, where the auction was held on Thursday, Baker Tilly initially offered UAH 29.988 million for its services, while Ernst & Young LLC, its only rival, offered UAH 32.5 million, which corresponded to the starting price, and the total price amounted to UAH 29.336 million.
“This will be the first consolidated audit of the concern in the entire history of its existence,” the Ukroboronprom said in a statement.
The state concern said that earlier international audits were carried out only at individual enterprises –members of the concern. In particular, Baker Tilly Ukraine has already conducted an independent financial audit of the state-owned company for the export and import of military and special-purpose products and services Ukrspecexport, which is the largest Ukrainian special exporter and part of the Ukroboronprom group of companies.
Ukroboronprom recalled that the search for an auditor has been ongoing since 2017 and was unlocked in the summer of 2019, when Ukrainian President Volodymyr Zelensky reshuffled the concern’s supervisory board.

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UKRAINE’S FORMER ECONOMY MINISTER ABROMAVICIUS APPOINTED HEAD OF STATE-RUN UKROBORONPROM

Ukraine’s President Volodymyr Zelensky has signed a decree appointing Aivaras Abromavicius director general of the Ukroboronprom state concern, according to a document posted on the presidential site. “Aivaras Abromavicius is appointed general director of the state concern Ukroboronprom,” according to decree No. 641/2019 published on the Ukrainian presidential website on Friday evening.
Before that, the Ukrainian president issued decree No. 640/2019 relieving Pavlo Bukin of his duties as head of Ukroboronprom.
Abromavicius was Ukraine’s economy minister between December 2014 and April 2016.

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PORTNOV SAYS SBI PROBING THEFT AT UKROBORONPROM, SIPHONING OF ASSETS AT POROSHENKO’S INSTRUCTIONS

The former deputy head of the Presidential Administration under ex-President Viktor Yanukovych, Andriy Portnov, has said Ukraine’s State Bureau of Investigations (SBI) has opened a criminal case to probe facts of embezzling funds from state-run Concern Ukroboronprom and siphoning them off into offshore accounts, and suspects in the case “could include dozens of ex-President Poroshenko’s allies.”
“Let me inform you about a new criminal case, which can incriminate dozens of people among Poroshenko’s associates. The SBI yesterday officially registered the case and began its investigation,” Portnov said on Facebook on Thursday.
Portnov said Poroshenko gave direct instructions to ex-National Bank of Ukraine Chairwoman Valeriya Gontareva, and the NBU board on January 19, 2016, revoked NBU decisions on hard currency control involving foreign economic activities, establishing that payments of Ukroboronprom to offshore accounts could be used for making prepayments without NBU hard currency controls and limits.
“This enabled the theft of several billion hryvnias from Ukraine’s army, hiding behind official decisions made by the NBU,” Portnov said.
Interfax-Ukraine has not received confirmation from the SBI regarding Portnov’s statements.

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