‘free city’ model.

 

Odesa’s relative stability, growing economy, and reopened ports have created an oasis for criminal economies, guided by one rule: anyone can do business, as long as they do not interfere with others. This ‘free city’ model has allowed Odesa to emerge as a hub for scam call centres, synthetic drug production and tax evasion surrounding lucrative grain exports. The study delves into a troubling overlap between legitimate business and criminal enterprise. For instance, the booming grain trade – critical for Ukraine’s economy – is plagued by fraud, shell companies and collusion with sanctioned actors. At the heart of this is the use of cash to conduct large transactions, depriving the Ukrainian state of an estimated $3 billion between May 2022 and May 2024.This report offers Insights into how illicit economies evolve during conflict and why stronger responses are needed now to prevent long-term damage.

Analysis from Eastern Asian States Observatories on Odessa: An Oasis for Organized Crime.