Prosecutors close fraud case against former Mriya CEO

Ukrainian prosecutors have closed their criminal case
for alleged fraud involving Mykola Huta, the former CEO of farming company
Mriya Agroholding (MRIYA), the slovoidilo.ua new site reported on Feb. 12,
citing a letter from National Anti-Corruption Bureau of Ukraine (NABU).
According to the letter, a criminal case was opened in 2014 naming Huta as a
suspect in massive fraud.

The investigators suspected embezzlement of over USD
1.3 bln by the farming holding led by Huta, which brought losses to its
creditors. NABU was responsible for leading the investigation of that case
since November 2018. However, on Dec. 29, this criminal case was closed by a
prosecutor citing no evidence of a criminal offense. NABU also reported that as
of Feb. 8, it has received no additional materials on the Mriya case from prosecutors.

Recall, Mykola Huta left Ukraine in 2014 after Mriya
declared insolvency and a criminal case was opened against its owners. In
November 2018, Huta was extradited to Ukraine from Switzerland, where the court released him on personal
recognizance.

Alexander Paraschiy: Law enforcement bodies no longer
suspect Huta in fraud, which we expected would be the most likely outcome after
he returned to Ukraine. Recall, an Interior Minister spokesman mentioned
already in November the low chances Huta would be prosecuted.

While Ukrainian law enforcement may continue its embezzlement
investigation of Mriya Agroholding, we don’t expect its outcome will bring
anything to Mriya’s former creditors. Such a precedent shows that the Ukrainian
courts are reluctant to convict anybody for financial fraud, which definitely
plays against Ukraine’s investment climate.