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Andrii Derkach
Member of
Ukrainian Parliament
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«NEW FACTS ABOUT INTERNATIONAL CORRUPTION, BURISMA AND SCHEME TO BANKRUPT UKRAINE»

Today’s press-conference is focused on a high profile case that involved officials of Ukraine and US, diplomats, security forces, lobby companies, Burisma and Bidens, Yanukovich and his family, Hontareva and Poroshenko.
  • 20.11.2019
  • Andrii Derkach personal Facebook & Youtube
2019

Today’s press-conference is focused on a high profile case that involved officials of Ukraine and US, diplomats, security forces, lobby companies, Burisma and Bidens, Yanukovich and his family, Hontareva and Poroshenko.

We will bring to public some facts establishing the important thing:

 

UKRAINE IS EXPECTED TO BECOME A BANKRUPT TILL 2021

A bankruptcy scheme which will be published today is significant : created by Yanukovich’s family, it was acting under Poroshenko and continues to operate until now – on the eve of the sixth anniversary of Maidan.

 

WHAT EXACTLY WILL BE PUBLISHED TODAY:

Firstly. New documents, approving involvement of top officials of Ukraine and US into international corruption.

Secondly. New evidences about a US investment fund, being close to one of the US parties, which helped Yanukovich’s family to launder USD 7,4 billions and drived Ukraine deeply into our debt.

Thirdly. Facts about son of former US vice President Joe Biden, Hunter Biden, who together with his partners received not only 16,5 millions from Burisma, but millions that were stolen from Ukraine.

And the main thing: detailed eventual bankruptcy scheme for Ukraine

What is the reason for us to disclose these facts? There are two of them:

  1. We want to prevent country from going bankrupt.
  2. We want to restore trusted strategic relationships with our partners – the US.

 

WHAT’S HAPPENING IN FACT?

We estimate that Ukraine will be bankrupted till the end of 2020, maximum in 2021.  They are leading us towards default.

This scheme was initiated under Yanukovich. Peter Poroshenko went on it. And now, as we see from budget 2020, it will also continue to work.

Shortly, its working principle is the following : with the support of US funds, the money laundered from the country is legalized, and is invested to the external public borrowing. At good interest rates – 6-8 in currency and 15-17% in hryvnia.

And such obligations are growing at an alarming rate.

After six years from Yanukovich escape and Maidan they not only didn’t disappear but involved nee participants.

 

WHAT IS THE THREAT OF BANKRUPTCY?

Last week we received from investigative journalists new materials of investigation on international corruption with involvement of Ukrainian officials.

Last week on November 14, unbeknownst to media, the General Prosecutor’s office of Ukraine announced new suspicion to notorious owner of Burisma, former Minister of environment, Zlochevskiy.

We’ve got this document from investigative journalists.

Why is it so important?

Firstly. The GPOU document once again confirms my previously published data on Burisma and international corruption.

Secondly. There is one important detail. According to the suspicion of Zlochevskiy from the GPOU, Biden and partners received their USD 16,5 mln for services in the work of Burisma. But what is their origin?

According to investigators, it is laundered money gained by criminal means.

Son of the US vice President Joe Biden was rewarded fir his service, here is a quote:

«Obtained through criminal means, laundered money»

Biden received money, the source of which was neither unsuccessful activity of Burisma, nor brilliant business steps or recommendations. That was money of Ukrainians. It was received by criminal means. That is how the GPOU believes.

That is only the beginning.

ZLOCHEVSKIY, BURISMA AND BIDENS HAVE BEEN ONLY A BRIDGE BETWEEN UKRAINE AND THE US IN THE BANKRUPTCY PROCESS OF OUR COUNTRY

According to the investigation, Zlochevskiy was directly involved into moving out of money by «Family of Yanukovich » (or « criminal organization of Yanukovich », as it is called in the case files).

They laundered money of Yanukovich through three companies within the territory of Latvia.

In addition, Zlochevskiy took part in illegal move out of money from « Real Bank » owned by the criminal organization of Yanukovich. In order to avoid wasting time, we will talk about it later.

Legalization of USD 1,5 billions through local government bonds, as confirmed by Kramatorsk court’s sentence.

On March 28, 2017 Kramatorsk City Court of Donetsk region confiscated USD 1,5 billions from the accounts of companies, controlled by Yanukovich’s OCG, for the benefit of Ukraine.

It was about financial resources and bonds in Ukraine. Local government bonds took a significant proportion in the confiscated properties. The courts decision was published in January 2018 by TV channel «Al Jazeera».

According to investigative journalists, a company of Valerie Hontareva «ICU» (Investment capital of Ukraine LLC) was a court company both under Yanukovich’s OCG, and Poroshenko’s group, and it used various financial instruments, including local government bonds, fonds, purchase for concrete clients, to launder corrupted cash, while getting a large profit.

In the court’s sentence it is repeatedly mentioned Investment capital of Ukraine LLC of Hontareva, which was a broker within the purchase of local government bonds by different companies controlled by Yanukovich’s OCG. I should remind, that the company was led by Hontareva who continued to work with Peter Poroshenko already in the new status.

For example, here is only one page of the decision, published by «Al Jazeera».

https://assets.documentcloud.org/documents/4345962/SEIZURE-ORDER-FROM-UKRAINE-COURT-UKR.pdf

As we see, Yanukovich’s OCG was taking seriously the local government bonds. They considered it as an money laundering and investment instruments.

However, 1,5 billions is just a small part.

Involvement of high-profile investment fund FTI in legalization of USD 7,4 billions owned by «Family of Yanukovich»

Equally significant for Yanukovich’s OCG were external public borrowing. Well, that’s where things get interesting.

According to the aforementioned Suspicion, «family» of Yanukovich is often charged with, in particular, legalization (laundering) of proceeds of crime, through investment fund

Franklin Templeton Investments of purchase procedures of external public borrowing with total cost of USD 7,4 billions.

 

Why did Yanukovich’s OCG need the US investment fund ? What was valuable for ex-president?

The fund was kind of patron in the USA for Yanukovich’s OCG and it was an opportunity ro launder stolen Ukrainians’ money through foreign jurisdictions, including the US.

Franklin Templeton Investments is one of thr biggest investment companies in the world, with assets under management, over USD 780 billions, and more than 21 million client portfolio. It includes more than 200 investment fund in different countries.

Son of the Templeton’s founder of – John Templeton Jr. Was one of major donors od presidential election campaign of Obama. That was important for Yanukovich’s OCG.

One more hero, linked to the fond is Tomas Donilon. Chief manager of BlackRock Investment Institute, shareholder of Franklin Templeton Investments, having the biggest share in the fond. It’s good to mention, that earlier he was National Security Advisor to Obama.

A few years later after the events described, he was a member of the Special Committee of Creditors, which was negotiating with Ukraine on the restructuring of external debt. This is the so-called shameful Yaresko’s agreement.

Whose money did the fund put by “investing » in Ukraine? According to the investigation, it was money,   obtained by criminal means by the Yanukovych family. This, in particular, is indicated by the period of the fund’s activity – 2013–2014.

Communication with the fund was undergoing through members of the Yanukovych family.

Here we see how, on January 15, 2013, members of the Yanukovych family  went to the United States with a four-day visit. The purpose of the trip of the economic block of the government was partnership building  with potential investors.In particular, it is known that they met Michael Hasenstab – the manager of Franklin Templeton Investments.

In general, the media were writting that Franklin Templeton Investments had concentrated in its hands 7.6 billion US dollars of Ukrainian debt for the period of 2013-2014. – apparently, the figure is close to 7.4 billion US dollars, appearing in suspicion of the General Prosecutor’s Office.

Which means that, members of the Yanukovych “family” according to investigators have criminally obtained 7.4 billion US dollars and laundered them through the investment fund close to some representatives of the US Democratic Party in the form of external governmental loan bonds!

By the way, American law enforcers had become interested in this fact.

In April 2014, representatives of the FBI and the US Department of Justice came to Ukraine to find information on finances withdrawn from Ukraine.

But after receiving information here, any attempts to further investigationby the American law enforcers have ended as soon as they have returned to the capitol hills.

Later, Shokin and Lutsenko have tried to deal with these issues. And when the former US ambassador to Ukraine, Marie Jovanovic, declares in the US Congress that she did not know why Lutsenko was going to go to Washington, she intentionally conveyedifalse information under oath.

Here is a confirmation, that she could not have been unaware of facts of international corruption.

Here is a document with a clear explanation of what Lutsenko wanted. Shokin wanted the same thing earlier.

By the way, a few words about the special confiscation of $1.5 billion by decision of the Krematorsky Court. This special confiscation was hindered by NABU, which has registered a number of criminal proceedings against employees of the General Prosecutor’s Office and against the fact of special confiscation itself.

The role of NABU, the leak of secret information by its leadership to the U.S. Embassy as well as the complete control of NABU by some individual representatives of the U.S. diplomatic mission were addressed by me at a press conference of October 9. The Prosecutor General Ryaboshapka confirmed this information by response on behalf of the GPU, and the head of the SAP Kholodnitsky has even registered a criminal proceeding.

Additionally, Ambassador Marie Jovanovic should explain the fact why she in her own actions was covering international corruption and why Shokin and Lutsenko were not allowed into the United States for a long time.

 

NOW ABOUT HOW USING FORMED DEBTS UKRAINE IS LEADED TO BE A BANKRUPT

In August 2015, Ukraine entered into an agreement with the Special Committee of Creditors on the restructuring of external debt. Let me remind you the key points of the agreement.

The agreement provided for a 20% reduction in sovereign and state-guaranteed debt – which is the reduction by $ 3.6 billion.

In exchange, the Value Recovery Tool (VRI) was applied: Ukraine issued new securities tied to the Gross Domestic Product (GDP) growth indicators.

The VRI application provides:

  1. With GDP growth from 3% to 4% per year, lenders will receive 15% of the excess of 3% of GDP
  2. If the Ukrainian economy grows by more than 4% per year, lenders will receive 40% of the value of each percent that exceeds such growth.

 

Thus, Ukraine has found itself in a situation where economic growth will lead to an increase in debt payments. The so-called development tax.

The more we earn, the more we pay. Only oneo question is to whom we pay: Poroshenko? Yanukovych? Templeton? To Democrats.

 

WHAT DOES IT GET?

 

  1. THE BILLIONS WERE STOLEN FROM UKRAINIANS AT THE HIGHEST STATE LEVEL

 

  1. STOLEN FROM USMONEY WERE LAUNDERED AND THEN LEGALIZED THROUGH AMERICAN INVESTMENT FUNDS

 

  1. THESE SCHEMES HAVE BEEN KEPT IN SECRET USING AMBASSADORS, DIPLOMATS AND HIGH RANKING OFFICIALS OF UKRAINE AND USA

 

  1. STOLEN AND LAUNDERED MONEY HAS RETURNED TO UKRAINE AS A DEBT

 

  1. WE HAVE AGREED ON THE DEVELOPMENT TAX IN ORDER TO HAVE MORE DIFFICULTIES ON PAYING BACK THE DEBT

 

  1. AND THIS DEBT IS GROWING EVERY YEAR THREATENING THE COUNTRY WITH BANKRUPTCY

 

Here are the data on the external debt of Ukraine

2014, when Yanukovych’s schemes began to work in comparison to 2019

We already pay almost half of the state budget income.

The government artificially reduces public debt by lowering the dollar. In hryvnia, debt falls, but real debt in the dollar is growing.

The government still continues to play with local and external government bonds.

During the last 9 months, according to official data from the Ministry of Finance, domestic debt increased by almost $ 7 billion – from 27.4 to 34.2 billion.

Bankruptcy schemes of the country worked under Yanukovych and Poroshenko. These schemes continue to work now. The next year, local government bonds were increased for 8 times – at 15-17% in hryvnia and 6-8% in foreign currency. There are no such rates in any country in the world – this is the plunder of the country.

We want, that due to today’s press conference, Vladimir Zelensky could see the situation in which Ukraine is being led to and could deside whether he wants to see Ukraine as bankrupt.

 

WHY AND WHO NEEDS UKRAINE’S DEFAULT?

A bankrupt country is cheaper. Ukraine is being prepared for the sale of gas transmission system, land, enterprises, etc. All that cost 8 billion UAH will cost 8 million UAH or 8 UAH. And we won’t even see this money – we will give it off to pay off debts.

American stakeholders are actively using the opportunities.

 

On the one hand, they help our powerful people to plunder the country. And on the other hand – they feed officials in government. Back in 2017, the Accounting Chamber

published a report, according to which:

In 2015, 440 international technical assistance projects in the amount of $ 5.2 billion operated in Ukraine.

In 2017, there were 390 such projects at the cost of $ 5.3 billion.

And above all, according to the report, the results of these projects implementation and the effectiveness of the use of the funds received by authorized state bodies were not evaluated.

Billions of American taxpayers’ money is spent irrationally, in non-transparent way, and inefficiently. Catering, banquets, hotels, experts and so on.

 

What must be done to prevent default? 

The First. To Vote for the temporary Commission of enquiry to investigate the facts of international corruption of the highest officials of Ukraine, which should give a response on the facts of bringing Ukraine to bankruptcy. We demand that the request of creating the temporary Commission of enquiry be put to the vote since Tuesday next week.

The Second. To unite the efforts of two countries – Ukraine and the United States – to establish the facts of corruption and money laundering, with the participation of citizens of the United States and Ukraine, equipped with money and power. President Zelensky should pick up the phone call to dial Trump to ask for help and cooperation in the fight against corruption and fly to Washington. The issue of combating international corruption in Ukraine with the participation of citizens, businessmen and US officials should become a key during a meeting of two Presidents.

The third. As a result of the meeting, to build the cooperation of Ukrainian investigative authorities and the US Department of Justice. And also jointly receive the following information:

  1. The bond issue organizers (lead manager or co-lead manager) must provide the lists of Funds employees, who subscribed to the issue of each bond, and the Funds, at their turn, should disclose, according to certain criteria, clients and beneficiaries, for whom they made a specific purchase.
  2. Identify companies with a portfolio of Ukrainian local government bonds and debt securities of more than 50%.
  3. With help of the US Department of Justice identify who are those people, who have invested in Ukraine from 2013 to 2017.
  4. To whom specifically did Templeton Company allocate Ukrainian securities: it is necessary to examine those companies on origin of the funds.
  5. Interview the management of investment funds – in particular, Michael Hesenstab and Thomas Donilon, about contacts with Ukrainian officials and details of business activities in Ukraine in 2013–2015.

 

Ukraine – is not a bankrupt state. We have resources and capabilities. We need to return the withdrawn money and block the scheme for withdrawing money from the budget. The dismantling of Ukrainian statehood can be prevented. We need to act.