Iranian business in Ukraine
While the Shaheddin fly over Ukraine, approximately 900 companies with Iranian capital continue to operate in the country. In 2020, these enterprises generated over 350 million hryvnias in net revenue. Analysts at the R&D center YouControl We studied Ukrainian companies with Iranian owners, determining their regional concentration, most common types of activities, and identifying the top companies by net income. We also added a new risk factor to the system, signaling a counterparty's ties to a country allied with Russia.
Iranian Business in Ukraine's Business Landscape
To determine the presence of Iranian capital in Ukrainian companies, YouControl analysts examined official data Единого государственного реестра In relation to the founders and ultimate beneficiaries of Ukrainian enterprises, 863 companies with Iranian capital were identified. Among the founders or ultimate beneficiaries of these enterprises were Iranian citizens or foreign companies registered in Iran.
According to the latest available data for 2020, disclosed last year by the State Fiscal Service, these companies generated UAH 351,8 million in net sales revenue, while controlling UAH 431,4 million in balance sheet assets and registering a total authorized capital of UAH 398,7 million.
These amounts indicate a relatively low level of direct presence of Iranian capital in the business landscape of Ukraine, since each of the top 1000 largest companies in Ukraine generated at least 1 billion hryvnias revenue for the same period. However, it's worth remembering that, due to years of international sanctions, Iranian capital has long been inclined to hide behind offshore indirect ownership chains or operate in the shadow economy outside the purview of official regulation. Consequently, the actual extent of Iranian capital's presence in Ukraine may be significantly higher.
Locations of concentration of companies with Iranian owners
661 Iranian companies are concentrated in the Ukrainian capital, Kyiv (77% of the total). Kharkiv Oblast ranks second, and Odesa Oblast third. Kyiv and Dnipropetrovsk Oblasts round out the top five regions with the highest concentration of Iranian businesses. This means Iranian capital is concentrated around the country's largest industrial centers. Meanwhile, the western part of Ukraine has the fewest registered Iranian companies.
Regional distribution of Iranian business in Ukraine
What are Iranian businesses doing in Ukraine?
The sectoral breakdown of Iranian businesses in Ukraine by economic activity codes shows the predominance of KVED 46.90. "Non-specialized wholesale trade." It is listed as the primary category for 91 companies (10.5% of the total).
Also, relatively many Iranian companies specialize in activities in the fields of construction (5.3%), restaurant business (5.0%), and computer programming (4.5%).
Wholesalers of fruits and vegetables, travel and design agencies, as well as wholesalers of grain, building materials and fuel have a high share.
The sectoral structure of Iranian business in Ukraine
Top Income Earners
The top 15 ranking includes the largest Iranian companies in Ukraine by net sales revenue based on 2020 data—the latest available data disclosed by the State Fiscal Service last year. The top company by net revenue is ZIBA LLC — 128.8 million UAH, specializing in the wholesale trade of fruits and vegetables. The company's import volume in 2021 amounted to between 1 and 1,5 million UAH. The director and shareholder of Ziba LLC is an Iranian citizen. Ghadiri Alireza Rajab also registered as a sole proprietor with the main activity of wholesale trade in fruits and vegetables.
The largest Iranian companies in Ukraine by net income
- Company LLC SP "Begland" has been operating in the Ukrainian market since 2002 and specializes in the production of polypropylene bags for flour, sugar, and grains, as well as polyethylene products. The Iranian company RAZAK KALAE TABRIZ holds an approximately 20% stake in the company's authorized capital.
- 10% of the company's authorized capital (AC) SUPERLAKOMKA LLC, producing confectionery products under TM "Chocolate", belongs to Iranian citizen Khushiari Leili Esmaeel
- In the ownership structure of a comprehensive supplier of hydraulic and pneumatic solutions LLC "GIDROPNEUMOSYSTEMS", which became in 2017 winner of the tender An Iranian citizen is also involved in the supply of equipment to the Artem State Nuclear Energy Corporation worth approximately 300 hryvnias. Safar Khanlu Hussein owns 33% of the company's insurance company.
- The sole participant of the company UVK PETROL LLC, LLC "ASTRATEL" and ONGO "ELECTRICAL INSTALLATION INNOVATIVE TECHNOLOGIES" The owner is an Iranian citizen, Pazuki Azam. The director of these three companies is listed as Alam Muhammad Rizwan.
- Participant in three more companies from the list LLC "AGRO UNIVERS"BT SOFT LLC, and IBC INNOVATIVE CONSTRUCTION TECHNOLOGIES LLC are owned by Mohammadi Fatemehossadat, registered in Sari, Iran. The director of BT SOFT LLC is Muhammad, whose last name and first name match those of the director of the companies owned by Iranian citizen Pazuki Azam.
- Co-owner LLC "INTERNATIONAL COMPANY FOR THE DEVELOPMENT OF INDUSTRY OF UKRAINE" is an Iranian citizen registered in Irpin, Kyiv Oblast—Dabirsiagi Seyedhesameddin. His last name and first name match those of the director of another company in the ranking. MESIA BIOPHARMA LLC.
Iranian Business in Ukraine: Instead of Conclusions
Although Ukrainian companies directly owned by Iranian citizens do not play a leading role in Ukrainian business, both authorities and businesses should pay due attention to the origins of their participants (especially those who exert decisive influence). After all, citizens of a country that de facto facilitates arms supplies to Russia during its aggression against our state require more detailed attention and scrutiny, particularly in terms of possible international sanctions and ties to Iran's scientific, technical, or military-industrial complexes.
The YouControl system allows you to track Ukrainian companies' ties to Russia's allies (countries that supply weapons to Russia and/or support it in the UN General Assembly). These countries include Iran, North Korea, Syria, Nicaragua, Cuba, Venezuela, and Eritrea. A risk factor will be triggered if a company's shareholder/beneficiary is a citizen of one of these countries or is registered in one of them.
translation Skelet.Org
By topic: Ukraine could be subject to US sanctions due to the Pashinskys
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