Illegal logging and "phantom" documentation: how over 30 million hryvnias were squandered in the Carpathian Reserve over five years

Illegal logging and "phantom" documentation: how over 30 million hryvnias were squandered in the Carpathian Reserve over five years

 The State Audit Service discovered losses exceeding 30 million hryvnias in the Carpathian National Nature Park, illegal logging, and questionable financial transactions.

The audit covered almost five years of the institution’s operations and concluded with the transfer of materials to the State Bureau of Investigations within a criminal proceeding (2018-2022).

The audit results revealed violations that caused losses amounting to over 30.6 million UAH. In particular, auditors recorded the sale of forest products at undervalued prices, as a result of which the special fund lost 17.19 million UAH in revenue.

Additionally, over 5.49 million UAH were recognized as illegal expenditures due to payment to LLC NVP "Agroresursysystemy" for land management technical documentation that was actually not provided, including regarding the establishment and restoration of boundaries of the national park’s land plots.

Furthermore, illegal wage payments totaling over 4.6 million UAH were detected. These include supplements to the minimum wage, rewards for working on holidays, vacation pay, compensation for unused vacations, sick leave, bonuses, indexation, allowances, material assistance, and average salary for mobilized employees. This amount also includes the single social contribution — over 809 thousand UAH.

Auditors separately recorded damage to the nature reserve fund exceeding 3.3 million UAH due to illegal tree felling.

According to available data, the audit materials have been transferred to the State Bureau of Investigations and added to criminal proceeding No. 62022000000001***, initiated on December 16, 2022.

Against the backdrop of the audit, StopKor investigations into possible business interests of the family of Yaremche mayor Andriy Myronyak in the territory of the Carpathian National Park gain special significance.

In particular, journalists previously reported on a restaurant on the national park territory where commercial activity is prohibited by law. According to the investigation, the establishment is linked to relatives of the mayor’s wife, settlements are made without fiscal receipts. Also emphasized is the lack of an alcohol license.

Investigators drew attention to jeep tours in the reserve zone. Ecologists emphasize that vehicles outside permitted routes cause serious damage to Carpathian ecosystems, particularly to polonynas and alpine meadows.