OCCRP: Instead of Helping Ukraine’s Poor, Ferrexpo’s Charitable Donations Flowed to Companies Associated With Its Then-CEO

• OCCRP states that on a single day in July 2015, around $26 million worth of hryvnia was transferred from Blooming Land sub-funds to three companies.
• OCCRP notes that Khimreaktyv made eight transfers to DRI LLC between July and November 2017 totaling around $480,000 worth of hryvnia.

OCCRP found that charitable funds from Blooming Land were transferred to companies associated with Zhevago, including Khimreaktyv and Gas Turbine Technologies, which then sent money to Finance and Credit Bank. By mid-February 2015, the final companies in these transaction chains had spent the equivalent of some $22 million buying shares in the bank.

On a single day in July 2015, Blooming Land sub-funds transferred around $26 million worth of hryvnia to Gas Turbine Technologies, Khimreaktyv, and another company. These funds were then sent to FK Faktoring LLC, which transferred the equivalent of $19 million to Finance and Credit Bank as repayment for a commercial loan.

• $986,000 single payment moved out of Khimreaktyv in December 2016
• $22 million amount spent buying shares in Finance and Credit Bank by mid-February 2015
• $26 million amount transferred from Blooming Land sub-funds to three companies in July 2015

• Review all transactions involving Blooming Land sub-funds, especially payments marked for charitable services to Gas Turbine Technologies, Khimreaktyv, and FK Faktoring LLC.
• Scrutinize payments to Finance and Credit Bank, particularly those marked as investments in share capital or loan repayments, as detailed in the Crowe report and OCCRP banking data.
• Examine contracts underpinning payments from Khimreaktyv to DRI LLC between July and November 2017, as referenced in the Crowe report and Kyiv’s Commercial Court ruling.

This story highlights how charitable funds can be diverted through complex transaction chains involving companies under common control, ultimately supporting a troubled financial institution rather than intended beneficiaries. The use of 'transit companies' and payments marked for charitable services, but ultimately repurposed for commercial loan repayments or share purchases, demonstrates typologies relevant to AML/CFT risk. Compliance officers must be alert to such patterns, especially when funds flow rapidly between entities and lack clear economic purpose, as confirmed by court rulings and bankruptcy administrators.