You're reading: Prosecutor’s office discovers evidence of financial fraud in AeroSvit

The Prosecutor's Office of Kyiv Oblast has discovered that AeroSvit violated the requirements of the Civil and Land Codes of Ukraine and the law on mortgages. 

According to the press service of the prosecutor’s office, in particular it was found out that in late 2012 the property of the airline was transferred as a collateral to a bank on the basis of a mortgage contract. The mortgaged property is a land area of 7.344 hectares located within Boryspil airport. The land plot is in state ownership with the right of permanent use provided to the airport.

According to the report, under the law on mortgages, the subject of a mortgage can only be property owned by the mortgagor. Given the specified provision of the law, the airline officials provided the mortgagee with false information on the form of ownership of the land plot.

The prosecutor’s office of the region submitted information in the Unified Register of Pre-Trial Investigations under Part 1 of Article 222 of the Criminal Code – fraud with financial resources.

The course of the pre-trial investigation of the criminal prosecution has been taken under control.

AeroSvit, which was the largest Ukrainian air carrier, began bankruptcy proceedings in late December last year, which was later canceled by the court ruling, and it is currently performing no flights.