Belarus Detains Suspected Organizer Of Russian “Paper VAT” Scheme

Reform.news Editorial Team · 18 October 2026, 18:51

https://reform.news/en/belarus-detains-suspected-organizer-of-russian-paper-vat-scheme/

Belarus has detained Alexander Osin, whom Russian investigators consider the organizer of Russia’s largest “paper VAT” operation. Russian Investigative Committee Chairman Alexander Bastrykin said this in an interview with RIA Novosti. The authorities are considering the extradition of the detainee.

“Alexander Osin, the organizer of the criminal community, went into hiding from investigators but was detained in the Republic of Belarus. The documents required for his extradition have been sent to the authorized bodies of that country,” Bastrykin said.

According to Russian law enforcement agencies, participants in the scheme set up around 4,000 fictitious legal entities and sold counterfeit invoices. It is alleged that the scheme resulted in the Russian state budget losing out on more than one trillion Russian rubles in tax revenue.

The operation was shut down in Moscow in April. In July, reports emerged that the suspected organizer had been detained abroad. Bastrykin has now clarified that Osin is in Belarus.

The head of the Investigative Committee also said forensic experts had recovered deleted data from a mobile device belonging to one of the suspects in the case.

“This made it possible to establish the division of roles among 12 accomplices and helped expose other individuals involved in the case,” he said.

“Paper VAT” refers to a scheme in which documents are issued without any actual delivery of goods or provision of services. Such invoices are used to claim unjustified tax deductions and reduce the amount of VAT payable.