Ukraine’s Influence Diminishes in International Fight Against Russia’s Financial Risks
With the change in leadership at Ukraine’s Financial Monitoring Service, recent appointments have led to a decline in the country’s effectiveness within international efforts to combat financial crimes.
During the fourth plenary session of the Financial Action Task Force (FATF), held from October 22 to 24 in Paris and led by President Elisa de Anda Madrazo, the topic of direct financial threats related to Russia was entirely overlooked.
The final documents made no mention of immediate risks to the global financial system, other than reiterating that Russia remains suspended from FATF membership, a measure Ukraine had sought since February 2023.
Previous FATF reports emphasized the risks associated with sanctions circumvention, increased financial interactions between Russia and sanctioned countries, as well as threats connected to weapons of mass destruction financing and cybercrime.
However, the current reports omit these issues altogether, raising concerns about Ukraine’s diminished influence on this critical international platform.
Notably, Russia intensified lobbying efforts in June 2023 to avoid being listed on FATF’s blacklist, pressuring countries like Saudi Arabia, India, Turkey, Mexico, and the UAE to oppose such measures.
Earlier, ZN.UA highlighted why Russia should be included in FATF’s blacklist, given its risky financial activities.
Meanwhile, Ukraine’s passive stance within FATF has resulted in little initiative to address Russia’s financial risks.
The State Financial Monitoring Service and the Ministry of Finance have shown minimal efforts to raise these concerns or push for relevant measures.
Additionally, in September, MP Yaroslav Железняк reported on possible embezzlement related to fortification projects in Poltava region, which might have cost the state over 200 million hryvnias more than the actual price.
In October, NABU conducted searches in companies and associates close to Pronin, involved in cases of misappropriation of funds for defense structures.
These developments underscore the urgent need for Ukraine to bolster its diplomatic and strategic efforts in combating Russian financial schemes and corruption, which continue to threaten national security and economic stability.