Director of Bud City Development Suspected of Tax Evasion Involving UAH 53 Million

The director of a company involved in the construction of residential and commercial real estate in Kyiv, Kyiv region, Kharkiv and Lviv has been notified in absentia of suspicion of deliberate tax evasion involving more than UAH 53 million.

The Kyiv City Prosecutor’s Office reported the case, according to StroyObzor.

According to investigators, between February and September 2020, the company sold real estate to individuals worth nearly UAH 300 million. Law enforcement authorities allege that the income was not declared in the company’s tax reports and that the relevant taxes were not paid.

Investigators believe that, in order to conceal the funds received, the company’s director transferred money to accounts of companies showing signs of being fictitious. The transactions were documented as loans, repayment of accounts receivable and the acquisition of corporate rights.

As a result, according to the investigators, the Kyiv city budget lost more than UAH 53 million in tax revenue. The suspect’s actions have been classified under Part 3 of Article 212 of the Criminal Code of Ukraine — deliberate tax evasion on an especially large scale.

The prosecutor’s office has not officially disclosed the suspect’s name. According to media reports, the case concerns Kharkiv-based developer Yehor Maslennikov, the owner of Stroy City Development (Object 1). Maslennikov is associated with residential and commercial real estate projects in Kharkiv and Kyiv, including the Vienna House residential complex, CRYSTAL RESIDENCE and the Manufactura IT Park.

Following the start of Russia’s full-scale invasion, some of the group’s construction projects in Ukraine were suspended. There have also been reports of Yehor Maslennikov’s business activities in Dubai, where several construction projects are reportedly being developed. At the same time, the information concerning the specific individual’s alleged involvement in the offense represents the investigation’s version of events and must be established by a court.