Ukrainian government starts struggling with offshore
Ukrainian businessmen have a traditional scheme of money laundering. It is made through the Cyprus banks: they output money there and then invest it (like investments) into the Ukrainian enterprises. Billions of dollars are taken out of the taxation in this unsophisticated way.
Recently the vice-premier of Ukraine Sergey Tigipko declared that till the 14th of December the documents for the denunciation of Ukrainian-Cyprian agreement about the avoidance of double taxation will be prepared. As he says, it will rise the tax earnings into the Ukrainian state budget. The procedure presupposes, that the government will bring in the appropriate draft bill, confirmed by all departments, into the parliament. The Experts are sure, that all groups will vote for the document, because none of political forces wants to be criticised and blamed.
This document will probably meet no opposition of the businessmen. They don't have to panic since except for Cyprus there are many other attractive offshore zones where they can redirect their money to. This whole initiative has a populist nature - everybody knows, that Cyprus is a place of money laundering of Ukrainian oligarchs. Pretending to fight with the offshore-frauds, politicians have only one aim - to restore the weakened trust of the voters.