KYIV, July 17 – The State Tax Administration has uncovered facts regarding the transfer of cash funds abroad by fictitious enterprises at Interkontinentbank, Syntez, UkrHazbank, and Integral Bank, the State Tax Administration's head Mykola Azarov announced.
"The funds were transferred to the accounts of Latvian banks," he stated.
According to Azarov, 47 fictitious firms transferred Hr 700 million for conversion into cash through the banks via false export contracts.
Azarov said that the capital flight cost the state budget Hr 116 million in VAT incomes alone.
According to State Tax Administration data, in 1999 capital flight from Ukraine to Latvia was around $5 billion.
