Shadow Traders: The Shady Underbelly of Ukraine's Grain Trade in Times of Conflict

Amid the political unrest and turmoil following the 2022 invasion of Ukraine, a darker subplot has surfaced that hints at significant illicit trade activities. The actors of this opaque narrative are various individuals and businesses exploiting Ukraine's robust grain market, resorting to shadowy dealings that not only breach ethical boundaries but also potentially infringe upon international trade laws.

Reports indicate that a number of Ukrainian grain companies currently under investigation have been engaged in a brisk and suspicious grain trade. The bulk of their grain exports have found their way to Romania and Georgia, with the grain sector seeing a marked uptick in activity since the geopolitical instability of 2022.

Among the key players implicated in this dubious network is Damalio RO, a Romanian firm. In an interesting turn of events, Damalio RO, which reported zero trading activity in 2021, registered a turnover of almost $14 million in the following year. A large proportion of the firm's imports have been traced back to the very Ukrainian companies under scrutiny.

Between June and September 2022, Damalio RO imported 971 grain shipments, valued at $3.4 million, from Ukraine. Of these, 785 shipments worth $2.8 million originated from companies under investigation. Damalio's largest supplier is Podillya Agroservis, a newly minted firm also being investigated for allegedly breaking customs rules.

Further raising eyebrows is Damalio's connection with Alexandru Pînzari, Moldova's former defense minister and ex-chief of National Police. Pînzari, previously arrested on charges of office abuse and other offenses, is responsible for Damalio's security. The company's owner, a Romanian-Moldovan individual with no public profile, also co-owns another company with Pînzari's son.

One of the most striking aspects of this case is Damalio's inexplicably cheap supplier, Raikomia. This company provided corn at a mere $0.07 per kilogram in July 2022, five times cheaper than the international price. Raikomia also shares a phone number with another recently established company from which Ukrainian prosecutors seized approximately 65,000 tons of wheat and corn during a tax evasion investigation.

Mihai Pătraș, a commercial director at Damalio, confirmed the company's grain transactions from Ukraine. He stated that he bought grain from "brokers" suggested by grain farmers, offering no further details on the murky sourcing practices.

These findings shed light on a dark corner of Ukraine's grain market, which seems to have been compromised by clandestine operations and a potential large-scale scandal. As more facts emerge from this ongoing investigation, it is hoped that a better understanding of these shadowy trade networks will help prevent further exploitation and corruption in a region already plagued by conflict and political instability.

This story was reported with the support of Journalismfund Europe. Data analysis was provided by Oksana Stavniichuk from OCCRP.