Preferential tariffs for Allseeds from HMOs: multi-year contract on dubious terms

Any restrictions create the basis for manipulation. With any restrictions, non-transparent earning schemes arise, which can become a reason for a public scandal. One such case is the situation between Allseeds Black Sea LLC and the Odessa Port Plant.

Due to the loss of the ports of Nikolaev and Mariupol, the Odessa port plant is the main transfer point for the export of Ukrainian vegetable oil, although the OPP administration states that in wartime the plant makes money only by transshipping grain. In any case, additional orders for a state-owned enterprise are generally a big bonus during the war. Moreover, the situation with maritime safety can change dramatically every day, and maritime exports are a key source of foreign exchange earnings for the country. But, as always, there is a “but”.

We are talking about pricing and the formation of differentiated tariffs for services of a state enterprise for individual clients. For example, Allseeds Black Sea LLC has extremely favorable tariffs for transshipment of products - 49 cents per ton. While Allseeds charges cargo owners no less than $15 per ton. At the same time, the state enterprise directly receives less than a dollar to finance operating activities now, during the most crisis period of work.

In addition, as our publication has learned, negotiations are underway to conclude a long-term contract between the HMO and Allseeds at the announced preferential tariffs. It is unknown how long the war and the economic crisis will last, but for some reason the management of the state-owned company is ready to fix the price for many years to come.

What is known about the Allseeds Black Sea company?

Allseeds black sea was founded back in the 90s of the last century and in less than 20 years it became the largest vegetable oil trader in Ukraine. It would seem that with such a status, the company should take care of its reputation. In 2019, the company was involved in a criminal case for tax evasion.

In 2020, Allseeds got into trouble with an attempt to export sunflower oil that did not belong to it from the UPSS terminal in the Nikolaev region. This was preceded by three searches at the terminal, during which law enforcement officers discovered more than three thousand tons of sunflower oil. UPSS openly stated that this is an overt attempt at raiding with the participation of law enforcement officers, and its reason is simply that Allseeds does not have enough of its own products for transshipment.

Also in 2020, Allseeds Black Sea appeared on the list of Ukrainian companies that carried out export operations through Swiss intermediaries and thus could avoid paying income tax in Ukraine. In general, this year the Ukrainian budget lost $1.2 billion from such operations, and companies that were engaged in such activities received a VAT refund from Ukraine.

New scandal involving Allseeds Black Sea LLC

In 2024, information appeared in the media that the largest vegetable oil trader was trying to direct his transport to berth No. 1 along the road, which is located in the sanitary protection zone and is used by the Odessa port plant to evacuate workers. According to legislative norms on state-owned property, it can only be used by state-owned enterprises. As noted by the OPP management, Allseeds Black Sea did not provide the required package of documents, and the special permit issued to the company has no legal force, although according to the company’s general director, Evgeniy Okhrimenko, Allseeds Black Sea previously shipped products from berth No. 1 and questions about the “legality of documents” there were no HMOs in the administration.

For HMOs, the black streak has been going on for many years, its capacity is not being updated, and its investment attractiveness is being leveled out for the sake of obtaining “gray” income. Nevertheless, the plant remains a strategic state-owned enterprise and its efficient, uninterrupted and safe operation should be the task of the economic protection authorities.