KYIV – Here is a video from the person who created the Duck Swan Effect for 7 countries – Ukraine suing over the grain embargo.
What’s the fuss about the grain from Ukraine?
Simple. It’s blood grain. Let’s explain.
You think its ethical to produce grain and feed people. We thought the same.
It’s not the case in Ukraine.
All grain harvest lands in Ukraine are owned by oligarch groups from (guess) Ukraine, Russia, the USA, the UK. The hypocrisy in this sector is such that you can say the oligarch groups are criminal if they are owned by the oligarchs in Ukraine or Russia, but if anyone speaks about oligarchy from the USA or the UK, it doesn’t exist – not oligarch-affiliated, not criminal. Nothing. It’s called international business. More on this further in the article.
Let’s review the largest grain production corporations.
Here is list of companies from top to the bottom:
- Loius Dreyfus
We would like to say that the current situation in Ukraine is vulgar, dumb and bloody. The grains that are exported from Ukraine are made on blood, sweat, war, tax evasion, use suppressed labor, use unethical land practices, use corruptionary tricks to move the grain through Ukraine, use criminal bandit security to guard the elevators, etc.
You understand that there is no other way to do agricultural trading in Ukraine other than the way they do it.
Let’s review this one example using the first public source available.
This is a schematic representation of how Bunge evades taxes and makes money on transfers of VAT and transfers of costs to evade taxes. Some people call it tax optimization. Some people call it intra-company transfer. Some people call it transfers through “shell” companies. All variants are correct. All methods lead to hiding of cashflows, tax evasion and, in Ukraine, those methods lead to incomes from the government. Yes, you’ve read it correct. Using such schemes, yes, they are called schemes in Ukraine and Russia, the companies make the government owe money. What happens next? The government officials pay the money, the facilitators obtain the so-called gratuity, a kick-back for commission, the government officials are happy, the company’s owners are happy, the grain can be taken to the port and exported.
In order for you not to think we were picky using the tax evasion with Bunge, here are several more examples with other largest grain export companies.
All these cases are known to the prosecuting bodies and fiscal authorities in the countries where these companies operate. Not surprising. You guess why.
Nibulon tax evasion
GPZKU – State owned Grain Trading company. (completely controlled by private individuals!)
Kernell, MHP, UkrLandFarming
What’s the deal with the embargo from Hungary, Poland, Slovakia and the Czech Republic on Ukraine?
It’s simple. Grain oligarch exporters can’t export from Odessa because there is war. Russia is bombing the seaport of Odessa, Illyechevsk, Mykolayiv. The grain export has moved to the port of Reni and the companies have to move millions of tons of grain using trucks to Poland, Hungary and further in Europe. The logistics are complicated, roads are stuffed, there are not enough trucks, the trucking rates have gone up.
Thus, the exporters try to push any amount of grain through the borders of Ukraine-Hungary, Ukraine-Poland, Ukraine-Moldova, Ukraine-Romania and try to sell on the border or as close after the border as they can. How do they do it? They dump the prices. They have a choice — keep it in Ukraine for next year, sell today, or burn it. They decide to sell and get whatever price they can get.
The problem that creates the Black Swan effect on the price. There are a lot of grains, a lot of criminals wanting the money from the grains, and there is Mr. Kachka (surname Duck). Just 1 day ago Mr. Kachka, the deputy minister of agriculture of Ukraine, in an unprecedented moved to sue Poland, Hungary and filed to the WTO
We can’t blame Poland for banning the Ukrainian wheat coming to Poland. Why not? It’s bloody grain harvested by ruthless companies that utilize cheap labor, ruined the lands, evaded the taxes, paid gratuities, lied to its employees, people, cities, the government. Was there any other way to produce grain and do the production and make business legally? We can firmly say No! There is no other way. The government of Ukraine, a bandit state created those conditions to operate as a bandit itself, feeds from the schemes it created in cooperation with grain exporters – in essence, creating a quasi-government-oligarch-SPV-shell parasitic ugly symbiosis that is definitely not a business, too far from ESG, too far from liberalism or anything else you studied in your life.
Given the current regulatory, tax, market condition created and enforced and kept by the government officials in Ukraine there is no other way for grain producers to operate in Ukraine other than 1) evade VAT and obtain VAT return. 2) evade personnel taxes 3) evade municipal taxes 4) evade corporate profit taxes 5) not use the filters 6) dump the waste into rivers and pay bribes to ecology inspectors 7) evade corporate social responsibility 8) not pay adequate salaries to people who operate harvesters, combines, etc 9) not pay custom clearance fees.
Why not do those 9 points? Simple. Margins. Margins and returns. VAT return is 20%. Out of thin air. Personnel taxes evasion is 20-40% from the payroll – approximately 2-3-5% from the revenue (depending on the size of the payroll and the company). Boom! 23-25% just using 2 points out of 9.
Where is business? Are those considered as business practices? We are sure those are tax evasion and labor criminal practices.
Thus, the grain produced in Ukraine is not grain produced by the People of Ukraine for the people of the world. The grain produced in Ukraine is produced by the people of Ukraine taken hostage and victims of oligarch trading companies; the money is laundered, the Ukrainian grains are product of pain, victims, blood, criminality, hostages. “Cool off, it’s normal” – majority will say – that’s how the business operates everywhere in the world. Think Argentina, think Poland, think Slovakia. No it’s not normal. It’s inhumane, it’s blood.
Bloody grain from bloody oligarchs.
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