The claws of the "Dentist"

Four months after the flight of Yanukovych and his associates from the country, some of their schemes in the Dnipropetrovsk region continue to work successfully. Every month, hundreds of thousands, if not millions, of hryvnias go to Donbas. And while it’s possible that this might be financing the separatist militants from the "DPR," law enforcement agencies continue to remain inactive.

When the country is at war and people are dying, even the loudest business conflicts take a back seat. But if well-camouflaged accomplices of the enemy have settled in the rear, then fighting them can be equated to combat operations. Especially in the 21st century, because "dirty" money sometimes causes no less harm than bullets.

The story surrounding the rather modest Dnipropetrovsk enterprise "Biopharma" is doubly illustrative. As a specific example of the brazen penetration of the "Donetsk people" into the local business environment and, at the same time,—the lawlessness of law enforcement agencies willing to execute any, even the most absurd, order from above.

On the country’s pharmaceutical market, Indian Anil Kumar Bats has been known for more than 15 years. Back in 1998, the graduate of the Dnipro Polytechnic started supplying to Ukraine quite scarce but cheap, and thus in-demand, medicines. For a long time, Anil carefully studied the technological processes in domestic medicine and even became one of the initiators of introducing a new, European standard for packaging medical alcohol. Over time, he realized that his own production was necessary, and in 2006, LLC "PFC Biopharma LTD" was registered. Simultaneously, Anil Bats, specifically interested in the alcohol theme, in collaboration with a group of scientists, developed and was preparing for state registration of alcohol-containing medicines "Ethyl" and "Ethyl70".

Technological capacities for product release were needed. Then a seemingly happy coincidence occurred – in 2007, Bats met with the owner of the "Dnipro Food Company," Oleksandr Vasyk, who produced fruit wines at his base in Mezhyrich, Pavlohrad district. Vasyk’s business was in deep crisis due to the catastrophic raw materials shortage (every year, there were fewer orchards in Ukraine), so he enthusiastically accepted the cooperation proposal. For the joint venture, Oleksandr provided his premises while receiving a 50% charter share in Bats’s company.

The overhead costs (repairs, equipment purchases, etc.) were decided to be shared equally by the newly made partners. As well as the duties: they agreed "on the shore" that Vasyk would focus on production issues, while Bats would handle the promotion and sale of Biopharma’s finished products. The allocation appeared quite logical as in almost ten years of work, Anil had not only gained experience but also the necessary connections in the medical-pharmaceutical world. Moreover, he was already the owner of the "Bio-product LTD" firm, which became the exclusive distributor in the new project.

The business went smoothly for several years: production and sales volumes (and consequently, profits) grew, market share increased, and the reputation was strengthened. It seemed – work without concerns. However, in November 2012, a black cat crossed between the partners. Bats learned that, allegedly, Vasyk had been selling part of the packaged products "under the table" for cash, bypassing the priority rights holder "Bio-product". Several control purchases in January-February turned these suspicions into certainty.

How do business partners who have lost trust in each other act in similar cases? They discuss the problem, reaching a common denominator. Or they divide the assets and say goodbye. Unfortunately, civilized "business divorces" are still a rarity in Ukraine. Almost always, separations are accompanied by a scandal, in which government authorities, law enforcement agencies, and judicial bodies actively participate. Our case is no exception. And already in July, using documents with the forged signature of Anil Bats, Oleksandr Vasyk appointed a new director of "Biopharma," completely depriving the co-founder of control over the joint creation. Just like in the childhood fairy tale, do you remember: "The rabbit had a house made of wood, and the fox’s house was of ice"… No need to remind how that story ended.

However, it was in July 2013 that the case only began. And not a fairy tale, but a criminal one, investigated by the Zhovtnevyi district police department of Dnipropetrovsk. The handwriting expertise conducted within its framework by the Kharkiv specialized research institute named after Bokarius officially confirmed the forgery fact on October 31. And everything would likely have returned to its usual course if it weren’t the intervention of "stern men" with distinct Donetsk-criminal roots.

For the last few years, it hasn’t been a secret for anyone in the country that the presidential Family completely took over the most "lucrative" sectors bringing quick and as much profit as possible. Licensing and registration systems, tenders, "cash-outs," customs, and circulation of excisable goods… The list is quite long. Of course, the medical alcohol market could not remain without scrutiny – having in hands the stick (Ministry of Revenues and Duties plus Ministry of Interior-Ss) and the Ukrspyrt concern (distributor of raw material quotas) as a compliant milking cow, one could earn huge money almost out of thin air. The scheme was elementary – obedient manufacturers were supplied with unaccounted 96% alcohol, it was packaged, then legalized with the help of "pits" and through related structures – "Salavat", "Oksamyt", "Pharma-invest", "Pharmsoyuz", etc. - entered the retail network. The profitability of such a link was unofficially assessed by the tax authorities at 50-60% net.

In every market segment, a separate structure under the highest "roof" was introduced. Thus, the medical alcohol market was de facto monopolized by the Kyiv LLC "Salavat," supervised by the infamous figure Armen Sarkisyan (Horlivskyi). It was with him that Oleksandr Vasyk contacted, preparing for open confrontation with the founder and father of "Biopharma".

In Ukraine, Armen Horlivskyi (Sarkisyan) is more known as the right hand of the controversial MP Yuriy Ivanyushchenko (Yenakiyevskyi) and one of the main organizers of the "titushky" during the Maidan

To make everything look "according to the regulations," Anil was invited to the famous Kyiv office on Krasnoarmiyska Street, where it was clearly explained to him: alcohol is the business sphere of the Family, here we dictate conditions and set rules. As a compliant partner, Sasha Vasyk has already been chosen, and this fact is not subject to discussion, so all the documents brought by Mr. Bats can be put where he knows. Or, as an option, take 100 thousand as a buyout and not interfere with the earnings of serious guys.

By then, the annual turnover from sales of packaged medical alcohol by "Biopharma" was calculated in numbers of a completely different order. Naturally, Anil refused to partake in the "extravaganza of unprecedented generosity" and decided to defend his rights. Predictably encountering a wall.

The list of his family’s ordeals a year ago was standard for a medium-sized business representative who risked fighting the corrupt-repressive system created by Viktor and Oleksandr Yanukovych. The already repeatedly tested set of threats and criminal cases was put into play under the sauce of fantastic, truly terrifying by any state’s standards, procedural violations and inaccuracies. Of course, all the strings stretched to the very top – not for nothing was the pre-trial investigation of a clearly fabricated charge of smuggling conducted by the Main Investigation Department of the SSU, contrary to all rules of jurisdiction, and was under the personal control of the "family" chief of the secret service, General Yakymenko.

The apotheosis of legal arbitrariness was the search on December 17 in the office of "Bio-product" on Tverska Street. The Kyiv group of "office workers" that came to conduct it did not allow either Anil Bats himself and his lawyer or… the traditional witnesses for such actions to be present. The policemen who arrived from the Industrial District Police Department were also driven away from the scene almost with kicks. The lawyer’s calls to the hotline of the local SSU office yielded no results, and later they disappeared from the recording device.

No wonder – under the leadership of the investigative department’s Denys Ladonko, the counterintelligence agents were busy for more than 8 hours with the most important state task — sawing open the money safe. Which was successfully taken away by morning in a "closed" state (although the present saw with their own eyes the bundles of cash falling out of the damaged doors, but covered with semi-transparent plastic bags) by car hired by… a manager from Oleksandr Vasyk! Approximately 2 million hryvnias were in the safe, which the investigator entered into the search protocol, for some reason, only more than three months later…

From the final destruction (including physical – not for nothing, at the peak of the repressive machine’s activity, he had to hide his wife with young sons outside the region) Bats was saved by the Revolution of Dignity and the escape abroad of the Yanukovych family with their closest associates. The process of "rolling into asphalt" gradually came to naught. But soon it turned out that practically nothing had changed otherwise, except that the case was returned for consideration from Kyiv to Dnipropetrovsk.

The Horlivskyi-family status quo is still maintained today. There’s no more Zakharchenko and Yakymenko – but for the time being, there are (although on leave) the head of the regional UGBEP, police colonel Ivanov, and his subordinate, head of the excisable goods control department Ivko, for more than half a year, shyly ignoring the obviously counterfeit origin of raw materials entering "Biopharma." For Oleksandr Vasyk, it seems, the role of "Father" is now taken by…the former chief tax inspector of the Dnipropetrovsk region, recently appointed head of the regional State Financial Inspection Petro Shynkarenko.

With him, Anil Bats associates most of his post-revolutionary ordeals:

The connection of Petro Shynkarenko with the co-founder of "Biopharma" can be traced through the business of his son Oleksandr – they, along with Vasyk, are founders of the pharmaceutical company "Biopharmasrs," registered in the Czech Republic. One can also associate with him the dubious return of "Biopharma" with the license revoked by the State Service of Ukraine on Medicines in August 2013 after an inspection recorded 40 violations (including 26 critical ones. Although, according to legislative norms, even one is enough. – Ed.). At the time, Shynkarenko Sr. headed the GFI in the Kyiv region. It seems that many actions (the dissemination of requests to most medical institutions in Ukraine and the provision of the lion’s share of "evidence" in the trumped-up criminal case, where I don’t even have the status of a suspect!), carried out by the GFI in the Kyiv region, are dictated by far from legal necessity. It resembles primitive score-settling or carrying out an "order"…

It seems that the newly appointed head of the regional State Financial Inspection Petro Shynkarenko is caught in the scandal to his ears…

No dispute, Shynkarenko is a significant figure, not to be trifled with. Although… Today, Governor Ihor Kolomoiskyi has set him such global tasks (just one control over all regional tenders is worth it!), that there might be no enthusiasm left for the "free program." Moreover — there’s a high probability of falling under the "anti-corruption locomotive," which steam demonstrably spread on the fifth and seventh floors of the Dnipropetrovsk RSA.

Truth is, Anil Bats is unlikely to breathe easier because of this. Control over "Biopharma" has not been restored (incidentally, after he was removed from management functions, the production quality control fell below par, and the unified packaging standard disappeared altogether. But the local State Drug Inspection, judging by everything, couldn’t care less about such "trifles." – Ed.). The confiscated money and personal belongings, including property documents and even…. children’s educational computers, have not been returned. And the criminal case is far from complete. This is easily explained — despite the change of the "upper echelons" of the security forces most of the usual acting participants in the process from the Ministry of Internal Affairs, SSU, and prosecutor’s office remain in their places and slowly curb the investigation. For example, the procedural supervisor, Deputy Prosecutor of the Zhovtnevyi district of Dnipropetrovsk Petro Oreshyn. The scandalous issue of signature forgery, unequivocally qualified as "official forgery," remains open. The situation is standard: there’s a crime, but there’s not even an informal confrontation setup nearby.

Perhaps, after the arrival on Reznytska Street of the new Prosecutor General Vitaliy Yarema and the publicity of the scandal in the mass media (recently, a number of influential Dnipropetrovsk print media publications and websites wrote about the scandal), the situation will fundamentally change. For now, the conveyor belt at the pharmacological production in the Pavlohrad district is practically not idling. The well-worn "gray" scheme works like a clock. From one hryvnia to one and a half from each 100-gram alcohol bottle (small change accumulates into hundreds of thousands, if not millions of hryvnias every month) are sent to Donbas.

Lyubomyr LOHOVENKO, for "ORD"

BY THE WAY

While the material was being prepared for release, it became clear that the ice has begun to shift: on June 20, employees of the Babushkinska prosecutor’s office and the regional tax police conducted a series of searches at the production site and in the Dnipropetrovsk office of "Biopharma." According to our data, practically everything described above was confirmed. Moreover, about 100 thousand bottles of counterfeit medicines, 28 cubic meters of unaccounted ethyl alcohol, and more than a million components – bottles, caps, labels – have been seized. Also, during the search at the enterprise, a working production line and about 15 undocumented workers were discovered.

However, despite the fact that according to this fact a criminal proceeding № 12014040640002433 is registered in the Unified State Register of Pre-Trial Investigations, the leadership of the regional prosecutor’s office actively intervened in the matter, trying to let the issue "slide" and to return the seized counterfeit goods without conducting an examination. This is unlikely – the high-profile case is very likely to be under special supervision of the General Prosecutor’s Office and the central apparatus of the SSU. For Vitaliy Yarema, this may generally become a matter of honor, as internal anti-corruption cleansing is one of the primary and foremost demands put before him by the President.