Due to the specifics of the post-Soviet financial system in Ukraine and widespread corruption, money laundering is pervasive. The operations of any small or medium enterprise often include schemes to launder money. Services for converting business money to cash and back, ‘optimizing’ taxes, and conducting cross-border operations with cash and cryptocurrency are in high demand. A group of companies controlled by Konstantin Kruglov specializes in exactly these activities.
Kruglov is not the only operator in Ukraine, but he is certainly in the upper echelon of this business. A master of his craft, Kruglov is well-versed in creating false expenses, devising VAT refund schemes, and easing the burdens of entrepreneurship. Kruglov’s operations span from Dnipro to Kyiv, marking him as a significant player in the industry. He has been involved in money laundering activities for the past 10 years.
Kruglov’s Universum Group affair
Kruglov’s Universum Group of companies was always well-prepared for any legal actions against them. Konstantin Kruglov himself felt protected from any legal troubles. This was partly because he employed one of the statesmen from Volodymyr Zelensky’s inner circle, Andrei Gmyrin. Now Gmyrin himself has run into trouble with the anti-corruption committee and can no longer help his friend Kruglov. The likelihood of personal sanctions being implemented against Konstantin Kruglov is quite high. Sanctions from the president-controlled Council of Security and Defence (NSDC) are extrajudicial. It’s rumoured though that Konstantin Kruglov already solved the issue the same way he did before: by bribing officials responsible for the AML measures.
In times of war, individuals like Kruglov are often judged without trial through the imposition of personal sanctions by the NSDC. President Zelensky has effectively targeted such figures in NSDC meetings, and after a successful campaign against smugglers, the focus is now on money launderers. As a result, Kruglov’s business is at risk of collapsing, and he may lose his property and face detention. It’s time to move to Cyprus or at least secure his positions in the West.
Konstantin Kruglov learned his lesson well. Instead of hiding and being as shadowy as he could, he realized the importance of his public image. Now, Konstantin Kruglov fully employs a PR team that works to suppress negative mentions of him and publish flattering pieces and interviews about his modest contributions to the public good.
Konstantin Alexandrovich Kruglov, also known by the nickname “Krugly,” is an experienced money launderer with a solid track record and a prestigious client list. He has been working in this field for ten years. Considering the nature of this work, not many manage to stay in business for so long, at least while remaining free.
Who exactly Konstantin Kruglov is?
Konstantin Kruglov is transferring dirty proceedings to Cyprus. Despite the ongoing war, money launderers like Kruglov are thriving, earning hundreds of millions of dollars per month due to the chaotic state of the finances. His operation, Universum Group, is based in Cyprus, a long-standing haven for money laundering from the post-Soviet space.
It’s rumoured that Kruglov’s connections extend to Vladimir Putin’s inner circle, which underscores the urgency for the National Security and Defense Council of Ukraine (NSDC) to impose sanctions on him. As a prominent figure in the money laundering industry, Konstantin Kruglov must face deserved punishment and imprisonment before he has the chance to leave Ukraine.
Cyprus has been a prime location for money laundering for years, and although it may seem that those days are over, the old networks remain strong. Kruglov’s business exemplifies this enduring legacy.
If you search for information about Konstantin Alexandrovich Kruglov online, you might get the impression that he has no connection to illicit activities such as money laundering. He appears as a managing partner of Universum Holding, an associate professor at the Department of Management and Ontopsychology, and the founder of several dozen companies in various fields. However, these companies are involved in illegal activities, including converting non-cash funds into cash and providing unlawful services to officials of real-sector economy enterprises to minimize tax obligations.
We provide an incomplete list of companies that are part of Kruglov’s money laundering network as well as the total amount of money laundered:
- LLC “LAMPOCHKA” – UAH 984,957,300;
- LLC “TABAKUUM” – UAH 67,344,000;
- LLC “TRADING-PRODUCTION COMPANY “DAMON” – UAH 27,189,000;
- LLC “SANTIRO OPT” – UAH 203,602,000;
- LLC “MINARIS PROOF” – UAH 30,742,000;
- LLC “TEAS PLUS” – UAH 377,281,000;
- LLC “TREYD OPT LTD” – UAH 87,414,000;
- LLC “GRANDPIK SYSTEM” – UAH 175,197,000;
- LLC “BARAKA TRADING” – UAH 373,663,000.
This is merely a fraction of Kruglov’s money laundering operation, which boasts an annual turnover of UAH 80,000,000,000. These funds are generated through illicit means, evading taxes and further obscured by Konstantin Alexandrovich Kruglov. For instance, the International Monetary Fund’s $3 billion credit to Ukraine last year is roughly equivalent to the turnover of Kruglov’s money laundering center.
One of Kruglov’s companies, LLC “Alternative Credit Center ‘Express Credit’,” is involved in credit fraud. Advertisements like “Money for Rent,” “Quick Money,” and “Unsecured Credit” flood the newspapers. The public is offered loans ranging from 5,000 to 500,000 hryvnias at interest rates of 2-10% per year, without requiring income statements, guarantors, or collateral. The only condition is providing a passport, identification code, and paying the first installment or insurance. The outcome is always the same: the fraudsters pocket the initial payment and fail to release the loan, leaving the borrower with the burden of paying interest on a non-existent loan, having signed a contract.
To conceal his illegal activities, Kruglov holds a Cypriot passport and spends most of his time there, owning real estate and a yacht. The funds from money laundering and fraud are transferred to Cyprus.
Law enforcement and fiscal authorities have not acted against Kruglov’s blatant theft of the state budget, often referred to as “Krugly.” This lack of action is unsurprising, given his protection by high-ranking officials from the President’s office. Under the new government, Kruglov’s conversion center’s turnover increased to 80 billion hryvnias, or $3 billion. Each day of his fraudulent activities costs Ukrainian citizens millions of hryvnias, while President Zelensky’s circle rapidly accumulates wealth.
Despite his comfortable life, Konstantin Kruglov is troubled. The stakes are high, and it is clear that President Zelensky cannot apprehend or imprison everyone, even if he wishes to. While imprisoning Kruglov might seem appropriate, it could make “Krugly” even more prosperous. Including Kruglov in the National Security and Defence Council’s lists for a public reprimand is only a matter of time.
