Business in Crimea, taxes paid to Russia and Novinsky’s life in Croatia
The company ‘Balaklava Ore Management’ in occupied Crimea, which was previously part of Vadim Novinsky’s ‘Smart Holding’ group, was re-registered in the name of his brother, Ashot Malkhasyan, after 2014. It continues to extract minerals and pays taxes to the Russian Federation’s budget. Open sources also report on the company’s and its employees’ involvement in the repair of military equipment and volunteer projects in support of the Russian army. This is mentioned in a report by Radio Free Europe/Radio Liberty.
According to Russian registers, between 2022 and 2025, the company paid over 2 billion roubles in taxes. The company has been subject to sanctions by the National Security and Defence Council of Ukraine since 2022. In January 2023, the State Bureau of Investigations opened proceedings regarding the company’s activities, specifically under articles relating to subversive activities, terrorism and treason.
The investigation indicates that the company supplied materials for Russian state projects, including the construction of the Tavrida motorway, Belbek and Simferopol airports, as well as facilities within the Patriot Park. Among the company’s clients are Russian entities linked to the defence sector.
Meanwhile, Vadym Novynskyi, who has been placed on Ukraine’s wanted list on suspicion of treason, is currently in Europe. According to journalists, he registered his residence in Croatia and in 2025 purchased property in the town of Samobor. This comprises plots of over 2.5 hectares with vineyards and orchards, and a villa of over 1,400 square metres.
In a response from his lawyer, Gonzalo Boyé, it is stated that Novinsky is a supporter of Ukraine and is subject to sanctions by the Russian Federation. However, the response does not provide any evidence to support this. It was previously reported that in 2020, Russian sanctions against him were lifted.
In March 2026, Novinsky gave an interview to the German outlet Compact.TV, in which he criticised the President of Ukraine and spoke about the war and relations with Russia. In particular, he stated that “the most important condition for Ukraine’s security is friendly relations with Russia”.
The Office of the President responded to journalists’ enquiries by stating that it attached no significance to these statements and described him as an oligarch who had left Ukraine and was spreading false information.
According to journalists, Novinsky left Ukraine in 2022 and has not returned since. In July of that year, he resigned his parliamentary seat. In December 2022, the National Security and Defence Council imposed sanctions against him. In 2025, the Pecherskyi District Court arrested him in absentia in a case of high treason.
