The NABU and the SAPO accuse former Deputy Minister of Agrarian Policy Volodymyr Topchii and the deputy head of the Mohyliv-Podilskyi District State Administration, Mykhailo Hotsuliak, of abuse of official position that could have caused losses to the state budget of more than UAH 27 million.

The case of former Deputy Minister of Agrarian Policy Volodymyr Topchii concerns the implementation of a budget program to support domestic agricultural producers, under which enterprises could receive compensation from the state budget of up to 80% of the cost of the planting material purchased. It was under this program that, in 2018, Ukrainian Walnut LLC submitted an application for compensation of its expenses on seedlings.

According to the investigation, in order to obtain this compensation without grounds, the Ukrainian Walnut company stated in the documents submitted to the district committee under the Mohyliv-Podilskyi DSA almost UAH 40 million as expenses on walnut seedlings. In reality, this was a contribution to the charter capital by a foreign investor who was at the same time the sole owner of the enterprise, and not any kind of financial burden on the company.

These documents were initially approved by the deputy head of the district state administration, who, according to the investigation, lacked the relevant authority, since he was not a member of the committee. Nevertheless, the deputy head of the DSA, Mykhailo Hotsuliak, signed the committee's opinion anyway. It was this opinion that became the formal basis for submitting the package of materials to the Ministry of Agrarian Policy, as it created the impression of real expenses.

Next, having received the package of documents from the district committee, ministry officials encountered ambiguity in the interpretation of the concept of expenses, so they turned to the Ministry of Finance for clarification. The Ministry of Finance did not directly prohibit counting such expenses, but emphasized that, according to accounting standards, a founder's contribution of seedlings to the charter capital cannot be recognized as expenses in financial accounting.

Despite this, the then Director of the Crop Production Department of the Ministry of Agrarian Policy, Volodymyr Topchii, allegedly held a meeting of the ministerial committee, which, in the absence of a quorum, decided to allocate the compensation. Such actions by the department director, according to the prosecution, caused the state losses of UAH 27 million.

The actions of the individuals in the case were classified under Article 364(2) and Article 366(1) of the Criminal Code of Ukraine.

The HACC approved the agreement and found the individuals in the case guilty. Hotsuliak was sentenced to 4 years' imprisonment with a fine of UAH 8,500, but the sentence was suspended with a probationary period of 1 year. Volodymyr Topchii received a similar sentence, but was additionally barred for 3 years from holding positions involving the performance of organizational and managerial or administrative and economic functions in state authorities and local self-government bodies. They were released from liability under Article 366(1) of the Criminal Code of Ukraine due to the expiry of the limitation period.

The damage they caused, amounting to UAH 27.85 million, has already been compensated. They also undertook to transfer UAH 211,960 each to the account of the Come Back Alive charitable foundation.

Volodymyr Topchii was dismissed from the position of Deputy Minister of Agrarian Policy and Food of Ukraine back in 2019. This was because the Cabinet of Ministers had decided to liquidate the Ministry of Agrarian Policy. Hotsuliak currently works as a gas discipline foreman at the Vinnytsia branch of Gas Distribution Networks of Ukraine.

In addition, for some time the investigation examined the theory of possible ties between Topchii and the management of Ukrainian Walnut LLC, but this could not be confirmed. At the same time, the pre-trial investigation established that Topchii maintained close contact with the company's founder — in particular, he corresponded with him by email and was aware of the submission of the documents to obtain the compensation.

It is worth noting that the beneficial owner of Ukrainian Walnut LLC is Ihor Tarasiuk, a former head of the State Administration of Affairs during Viktor Yushchenko's presidency and a former MP. He started the walnut-growing business together with Oleh Kononov, a partner and former top manager of Kostiantyn Hryhoryshyn's Energy Standard group. In March 2017, the Prosecutor General's Office served Ihor Tarasiuk with a notice of suspicion of aiding the unlawful seizure of state property — a leisure complex better known as Yanukovych's Mezhyhirya residence. In 2019, the Pechersk District Court of Kyiv closed the case against Tarasiuk due to the expiry of the limitation period.