When the Panama Papers exposed the offshore assets of Ukrainian President Petro Poroshenko’s multi-million dollar candy business, Roshen Group, the people were left embittered. Ukraine’s economy is in a pre-default state, shaken by several political crises such as the ouster of the Prosecutor General and the resignation of embattled Prime Minister Arseniy Yatsenyuk.
Chocolate King” and “Chocolate War” have become part of the lexicon of Ukrainian politics since Poroshenko became President. He’s a prominent oligarch – and owner of one of the largest confectioners in Europe.
The Panama documents revealed that Poroshenko cooked up Prime Asset Partners, an offshore holding company in the Virgin Islands – employing the now-notorious services of Mossack Fonseca.
When Poroshenko was elected President in 2014, the country was in turmoil. Devastated by the Maidan Revolution and at war in Eastern Ukraine, Poroshenko promised peace, anti-corruption reforms, and, yes, to sell his candy business.
“As the president I will sell my business and concentrate all my efforts on serving the nation,” he promised.
Roshen produces 450,000 tons of 320 types of sweets annually. In Ukraine, Roshen stores are as ubiquitous as Starbucks is over here.
Neither Ukraine’s chief prosecutor -nor its National Bank – will investigate the President’s sweet offshore deal, claiming he is above the law. “There is no law in Ukraine that would hold the president responsible for any misbehavior,” says journalist Sonya Koshkina. “Talk of impeachment is absurd – we know the Ukranian constitution doesn’t allow it.”
The former leader of Iceland must wish he was a Ukranian instead.
Ukraine’s tax and judiciary systems are so corrupt that entrepreneurs don’t feel safe operating businesses. Legal protections offshore are a much safer bet. Financial advisors for the President said that the Virgin Islands were chosen to make Roshen more attractive to international buyers.
There may no legal implications for Poroshenko. But his Panama Papers venture is seen as unethical by many of my countrymen, adding to the frustration of Ukrainians who saw little change in the last two years of his presidency. Claiming to be a symbol of hope and a transparent, corruption-free country, will Poroshenko finally deliver on his promises and make lives of Ukrainians a little…sweeter?