This unique study illustrates how the Ukraine loses billions of tax income due to profit shifting through transfer pricing in exports of wheat, maize and oil. These shady business techniques led to lower wages of agricultural workers, substantial amounts of avoided taxes and unfair competition and risk consequently cementing the huge economic inequality for generations.

The study provides calculations of shifted profits, estimations of underpaid taxes in the last several years, as well as policy proposals for combating profit shifting. It comes as a follow-up study on 2018’s “Profit shifting in Ukraine’s iron ore exports” publication.