SOS! The corruption crisis in Ukraine is damaging global business and undermining democracy.
For over two years, Cryoin Engineering, a crucial partner for American chip manufacturers, has been bravely resisting corporate raiders and corrupt Ukrainian officials. In this article, we provide an overview of the dire situation.
Image: Cryoin Engineering Team
Semiconductors — the technology that powers our phones, laptops, smart homes, and cars — are facing critical shortages due to increased demand since the pandemic. Ukraine, home to key facilities for U.S. chipmakers, was a critical link in the global supply chain, particularly because about half of the world’s neon gas came from a Ukrainian company called Cryonin Engineering. But Ukraine’s ongoing conflict with Russia and rampant corruption are exacerbating the supply crisis. As a result, the Chinese have cornered the entire neon gas market.
Cryoin Engineering: A Vital Player in the Semiconductor Industry
Image: Cryoin Engineering - Rare Gases Manufacturer
Based in the Black Sea port city of Odessa, Cryoin Engineering is a pioneering force in the production of ultra-pure rare gases. The company's proprietary technology enables the creation of Neon, Helium, Xenon, Krypton, and their isotopes at unparalleled purity levels.
With state-of-the-art facilities and patented processes, Cryoin has established itself as a global leader in the industry. The company's commitment to quality is underscored by its ISO 9001:2015 certification.
Before the war, Cryoin was a critical supplier of neon gas, an essential component in semiconductor chip manufacturing. Its customer base spanned across Europe, Asia, and North America, with the United States being its primary market. As a responsible corporate company, Cryoin contributed significantly to the Ukrainian economy through tax payments and supported the country's armed forces. The company employed over 200 dedicated individuals.
Image: Receipt for the Transfer of 100,000 UAH to the Ukrainian Armed Forces
Cryoin Engineering's management was honored with a medal for its significant contributions to supporting the Ukrainiany Armed Forces.
Image: Medal for Supporting the Ukrainian Air Force
Cryoin Engineering has made a major contribution to the country's economy and image. The company is an ardent supporter and helper of the Ukrainian army. Under normal circumstances, the country should support such companies. However, the insidious grip of corruption within Ukraine has led to a shocking turn of events. Cryoin is now falsely accused of aiding Russia's military machine.
Timeline of Events
Sale of Products to Turkey
In February 2022, at the beginning of the war, Cryoin Engineering sold helium cylinders and equipment to a Turkish company, a NATO country. This transaction has been misused to accuse Cryoin of treason and colluding with Russia.
Pressure from Borisov
The company faced intense pressure from Yevgeny Borisov, a notoriously corrupt Ukrainian military commissar. Borisov, who has illegally amassed over $4 million, extorted $2 million and a 60% stake in Cryoin Engineering. When the company refused, it became a target for a hostile takeover under the guise of patriotism.
Criminal Cases and Raids
After Cryoin rejected Borisov's extortion claims, it was accused of producing weapons for Russia, despite the fact that it mainly dealt in inert gases for medical and electronic purposes. In September and December 2022, raids by the Security Service of Ukraine (SBU) and the Prosecutor General’s Office paralyzed the company, seizing its equipment without a single piece of evidence. New charges of collaboration with Russia were filed in February 2023, leading to further raids and the seizure of all company assets in March 2023.
Image: The company is being raided by the Security Service of Ukraine
Unwarranted Seizure of Company Property
In April 2023, all assets of Cryoin Engineering were transferred to the Asset Recovery and Management Agency (ARMA) without a court order finding the company guilty. ARMA plans to transfer these assets to its affiliated firms, continuing its campaign to take over Cryoin Engineering under false pretenses.
In the summer of 2023, Borisov was fired and charged with corruption (he is currently in prison). However, the aggressive takeover of Cryoin Engineering continued.
Image: Yevgeny Borisov Arrested on Corruption Charges
Expert Assessments
Independent experts have confirmed that helium and neon produced by Cryoin Engineering are not used in the military industry. The experts' findings disprove all accusations against the company, excluding any links between its activities and weapons production.
Image: Official Conclusion from Independent Expert
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Expert Conclusion: Helium and neon (with a purity level of no less than 99.99%) are not used in the military industry for the production of military equipment, firearms, or their components.
Shaping Public Opinion
To discredit Cryoin Engineering, the raiders used media outlets such as NV.ua, which received illegal payments for disseminating false claims. These allegations include unsubstantiated claims about the use of Russian raw materials and helium in the production of weapons. Cryoin's technology does not require such imports. This disinformation damages the company's reputation and undermines confidence in the investment climate in Ukraine.
A Global Wake-Up Call
The case of Cryoin Engineering is a stark reminder of how corruption can destabilize critical industries with global implications. As the semiconductor industry grapples with the loss of one of its key suppliers, the world is witnessing firsthand the destructive power of unchecked corruption in Ukraine. It is crucial for the international community to recognize these dangers and support efforts to bring transparency and accountability to all levels of government, ensuring that businesses like Cryoin Engineering can operate without fear of corrupt interference.
Government and law enforcement agencies have decimated more than 70 percent of the Ukrainian economy. Ukraine depends on American and Western aid; without it, the country’s budget could collapse at any moment. This poses a serious risk to the existence of Ukraine as a state.
On one hand, Ukrainian officials continue to live comfortably, laundering their assets. They buy expensive houses and luxury cars while the people endure the lawlessness of government structures and the loss of jobs.
On the other hand, Russia continues to shell peaceful cities and villages in Ukraine daily. The people of Ukraine are caught between a rock and a hard place, and this situation cannot persist indefinitely.
The current leadership of Ukraine is well characterized by a quote from Abraham Lincoln:
"You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time." - Abraham Lincoln
This situation is unacceptable and requires global attention. The international community must take action against corrupt Ukrainian officials, strengthen the monitoring of illegal financial flows, and hold accountable those involved in corporate raiding and bribery.
Cryoin Engineering seeks support to combat the corrupt actions within Ukrainian power structures. The company appeals to conscientious citizens and U.S. authorities to help ensure justice prevails.