Lithuanian businessman and Lukashenko associate made billions through oil export scheme, according to investigation

Lithuanian businessman and Lukashenko associate made billions through oil export scheme,  according to investigation
The 'solvents' scheme was allegedly implemented through a Singapore-registered Savoil LLP company owned by Vitold Tomasevskij. / Наша ніва
By bne IntelliNews November 9, 2022

A Belarusian businessman, Yury Chyzh, and his Lithuanian partner, Vitold Tomasevskij, are reported to have transferred billions of dollars out of Belarus that they had allegedly made thanks to preferential access to cheap petroleum, claims an investigation by the Belarusian Investigative Center (BIC), which shared its findings with LRT.lt, the website of Lithuanian public broadcaster LRT.

The two businessmen declined to comment on the claims, according to the BIC.

According to the investigation, Chyzh used to be considered Lukashenka’s main “wallet”. He lived in the same high-end village Drazdy as Lukashenko.

In the early 2000s, Chyzh's company Triple replaced the former players on the Belarusian oil market – Yukola, Jurimex and Schwebel. In 2011-12 he gained access to cheap Russian oil, and in just a year and a half, he earned more than $5bn in Belarus from the alleged manipulation with customs codes of petroleum products, a sum comparable to 7% of Belarusian GDP. By marking them as “solvents” the two partners are said to have avoided paying export duties on petroleum products.

BIC’s source confirmed that this scheme was implemented through a Singapore-registered Savoil LLP company owned by Tomasevskij. In August 2011, Tomasevskij founded in Singapore Savoil LLP, a fuel and oils trading company. Chyzh's company Triple also participated in this business. In just five months, Tomasevskij received $800mn through the firm. And by the end of 2012, the company's revenue was about $5bm. 

Belarusian statistics began to record the export boom of “solvents and thinners” from September 2011, a month after the Tomasevskij had registered Savoil LLP. 

The “solvent scheme” was stopped by then Russian Prime Minister Dmitry Medvedev at the end of 2012.

The investigation also found that the Belarusian government allocated budget money to fund projects of Chyzh and Tomasevskij, and the businessmen were given benefits and exclusive opportunities to increase their income.

The state awarded companies of  Chyzh with lucrative exclusive deals. In 2007, Triple bought out the Bereza Silicate Products Plant without any competitive bidding held for this asset. In 2012, another Chyzh’s enterprise, KvartsMelProm, received a sand and chalk deposit for development in the Malarytski district of the Brest region, again without an auction.

Lukashenka's favour extended to joint projects of the Chyzh family with Tomasevskij. For example, the Danprod pig farm in the Valozhynski district. The authorities issued a subsidised loan of almost €40mn.

At the end of the decade the company had expanded to other fields: founded a pharmaceutical factory, got state contracts for the construction of housing for the military, got other exclusive pieces of land for residential construction in Minsk, the capital, and built an ice arena in Chyzh’s native Biaroza.

In March 2016, Chyzh was charged with large-scale tax evasion and forced to pay $11mn–12mn in damages. In September 2016, he was released, but in March 2021 he was detained in a new case of tax evasion. According to media reports, the businessman was released on a pardon in September. 

Chyzh's business empire has not been completely destroyed. A number of businessmen's assets are now controlled by his relatives and close associates.

With the money he earned, Tomasevskij bought villas and apartments in Europe. He also has expensive cars and private jets at his disposal.

In the mountains near Alicante, Tomasevskij has a landplot of 3,000 square metres, on which a luxurious villa with a swimming pool is located, with an estimated value of $15mn. Another residence is a villa on a plot of 3,000 square metres at the foot of the Swiss Alps overlooking Lake Lugano. Similar houses in the vicinity are worth about €13mn.

Now Tomasevskij is engaged in the oil business in Russia. Through the Invest Trade company, he is connected with the development of the Kamenskoye deposit in the Komi Republic. Tomasevskij owns half of the firm through the Cypriot asset Senistano Holdings Limited.

The remaining 50% is owned by Nemerson Finance Limited, registered in the British Virgin Islands. Behind this company is the former vice-president of Lukoil, Valery Subbotin, which became known from the leaked correspondence of Invest Trade employees. This information was also confirmed by the former top manager of Invest Trade.

According to the Russian association Assoneft, in 2019 the company of Tomasevskij and Subbotin produced almost 12,000 tonnes of oil. In 2020, it increased production by another 5,000 tonnes. Data on production trade for the last year isn’t publicly available, but in 2021 the net profit of Invest amounted to more than €10mn.

The business contacts between Chyzh and Tomasevskij in Belarus reportedly continue to this day. According to an extract from the Belarusian Ministry of Justice, they still own JLLC NefteKhimTrading,  Chyzh as an individual, and Tomasevskij through the British company Globecast Limited.

 

 

News

Dismiss