Finance & economics | Funding the fight

How Ukrainian farmers are using the cover of war to escape taxes

“Black grain” infuriates exporters playing by the rules

Wheat is harvested on a field near Novosofiivka village, Mykolaiv region, Ukraine
On the lookout for “ordnance”Photograph: Getty Images

Since Russia began its invasion in 2022, Ukraine’s economy has shrunk by a quarter. But the ravages of war are not the only reason for the government’s reduced tax take. Businesses are also making use of the chaos to dodge paying their fair share. This is particularly true in agriculture, which before the war was responsible for 40% or so of Ukraine’s exports by income. The sector has been transformed by a scramble to find export routes safe from Russian attack. As Taras Kachka, Ukraine’s deputy minister for agriculture, notes, this disturbance has provided plenty of opportunity for farmers to “optimise taxes”.

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This article appeared in the Finance & economics section of the print edition under the headline “Against the grain”

From the May 11th 2024 edition

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