The mafia path of Ukrainian smuggler Hryhoriy Kozlovskyi: tobacco, hotels, and connections

Hryhoriy Kozlovskyi, known for his ability to attract attention and provoke those around him, has repeatedly created high-profile situations.

In the session hall of the Lviv City Council, where he was once a deputy, Kozlovskyi appeared accompanied by armed guards. He could unexpectedly burst into a city commission meeting, creating conflict situations. Disputes and scandals accompanied the activities of almost all his establishments in Lviv and its suburbs.

Even in his beloved sport, football (Hryhoriy Kozlovskyi is the president of the Vynnyky team «Rukh»), he managed to cause a scandal which resulted in a one-year disqualification.

Practically with everything he does - his manners, statements, actions - he seems to challenge the old unwritten rule: business loves silence.

And that’s despite the fact that unlike its owner, Kozlovskyi’s main business truly hides in silence. It gets lost in the shadows. It dissolves in cigarette smoke…

Kozlovskyi likes to present himself as a hotelier and restaurateur. The owner of the «Grand Hotel», «Royal Brewery», «Svyatoslav». Even in the official channels of the Lviv City Council, Hryhoriy Kozlovskyi was listed as the general director of LLC «Holding «Grand Hotel». All this corresponds to reality: the hotels, the restaurants, and the directorship in his hotel. However, the center of Kozlovskyi’s business empire is not in noisy Lviv with its tourists, hotels, and restaurants. The source of the eccentric millionaire’s wealth and inspiration is located ten kilometers from Lviv, in the quiet picturesque Vynnyky. It is here that the Lviv Tobacco Factory, established in 1779, has been operating, and for over twenty years this is where Hryhoriy Kozlovskyi has been earning his fortunes.

Cigarette Baron. Lviv Tobacco Factory

Hryhoriy Kozlovskyi appeared at the Lviv Tobacco Factory in 1994, at the age of 23, right after graduating from the Lviv Trade and Economics Institute. The young graduate took the position of a customs clearance specialist, which started his rapid «tobacco» career.

But it all started far from rosy. In numerous interviews, the current owner of factories, hotels, and restaurants likes to talk about his poor childhood. He grew up in a one-room apartment shared by four people in the proletarian area of Novyi Rozdil, where «chemists» were abundant, making it frightening to even step outside. He spent his childhood at his mother’s workplace in a laundry, where together with his sister, he helped their mother wash and iron.

He earned his first money by collecting bottles after adults’ drinking parties in the local park. According to his own admission, Kozlovskyi got into the trade and economics institute almost by accident. He was actively preparing to enter university, but everything changed due to his teenage passion for football. The trade and economic team was looking for a good goalkeeper, which young Hryhoriy was. Such a «recommendation» at that time was worth no less than bribes and connections.

This is how the son of an electrician and a washerwoman ended up in a «fancy» institute, where he obtained a specialty in «accounting and analysis of economic activity».

So, in 1994, Kozlovskyi came to work at the Lviv «tobacco factory», which at that time had passed into the ownership of American R.J. Reynolds Tobacco. As he tells it, the then director of the factory, Yevhen Khomyk, entrusted him with the important task of establishing customs clearance for products, as it was a complete mess back then.

The young specialist handled the job brilliantly and received a $100 bonus in gratitude and, most importantly, a position as head of the foreign economic activity department. It’s difficult to judge the authenticity of this story today.

What is known for sure is that the chief accountant of the tobacco factory was our hero’s mother-in-law, who, apparently, contributed no less to the rapid career progression of her son-in-law. So when in 1998, the American investor decided to liquidate the enterprise, leaving behind only bare walls, Kozlovskyi was already well-integrated within the higher ranks of the Vynnyky «tobacco industry».

And when, no further than a year later, a new owner, the company «Volyntabak», came to the factory, he became the manager of commercial affairs in the newly formed LLC «Lviv Tobacco Factory» (later reorganized into a joint-stock company). A seemingly modest position, but with enormous opportunities for a person with a business acumen.

The company «Volyntabak», although it had never previously been involved in the production of cigarettes, was a serious player in the tobacco wholesale trade market. The company had its own reasons to start its own production of tobacco products, and these reasons fully coincided with the interests of the team to which Kozlovskyi belonged.

How the Vynnyky tobacco businessmen could make money was shown by the history of the summer of 2004, when a classic «mask show» was set up on the tobacco’s territory by law enforcement.

The then director of the factory, Volodymyr Kvurt, accused the transnational company «Philip Morris» of ordering this action, allegedly wanting to intimidate the Lviv competitor.

In the Lviv police, this information was confirmed, explaining that they were looking for cigarettes illegally produced under the brand of «Philip Morris» on the factory’s territory. Where there’s smoke, there’s fire, as the saying goes. Especially cigarette smoke… Be that as it may, by 2005, yesterday’s poor son-in-law owned enough capital to open his own restaurant in Vynnyky, «Svyatoslav», the first in Kozlovskyi’s line of restaurant businesses.

But let’s talk about his restaurant business a little later.

In 2006, cigarettes business faced difficult times due to changes in Ukrainian legislation, and the tobacco factory stopped producing cigarettes. Its director, Volodymyr Kvurt, moved to a position as Secretary of the Lviv City Council, and Hryhoriy Kozlovskyi founded his own company, LLC «Mega Euro Bud».

Despite its «construction» name, the firm was directly connected to the cigarette business. At least a year later, according to media reports, it was engaged in supplying equipment from abroad for organizing «illegal» lines for cigarette production.

And these lines were in high demand. After «Volyntabak» exited the game, the Lviv «tobacco company» established connections with the Russian «Baltic Tobacco Factory» (BTF).

Kozlovskyi and company flooded Europe with «Jin Ling» cigarettes

The Russians had their own «theme» - the «Jin Ling» cigarettes. These, similar to «Camel», cigarettes, initially of Chinese origin, with a mountain goat on the label, literally filled the European «black market», becoming one of the leaders among contraband brands of tobacco products.

At the same time, according to European customs services, no legitimate deliveries of «Jin Ling» to the EU countries were conducted. When journalists from ICIJ (International Consortium of Investigative Journalists) infiltrated BTF posing as Romanian smugglers, one of the company managers directly advised the «Romanians» to carry out supplies of contraband products directly from the Lviv «tobacco factory».

The Russians launched Jin Ling production in Vynnyky in April 2007. According to one version, the owner of BTF, Vladimir Kazakov, ’entered into a share deal’; according to another, he fully acquired the factory from the Volyn residents. The name «VolynTabak» has not been mentioned in the context of the Vynnyky factory since then, and a little later, in 2010, a newly created LLC «Lviv Tobacco Factory» officially begins cigarette production, with Hryhoriy Kozlovskyi becoming the official owner and director.

A year later, in 2011, another company appears, LLC «Vynnyky Tobacco Factory». Also founded by our hero. However, in a short time, both companies were transferred to other individuals.

Nevertheless, despite the intricate ownership structure at the Lviv tobacco company, it is no secret that the real owner there continues to be Hryhoriy Kozlovskyi. Or, more accurately, the people he represents.

It is clear that illegal activities of such magnitude in Ukrainian conditions would be impossible without serious police protection. Among the high-ranking law enforcement officers who for many years ’covered’ Kozlovskyi’s cigarette business, and the companies, were leaders of the Economic Crime Department, chiefs of regional police, and generals from the central units of the Ministry of Internal Affairs.

It is said that Kozlovskyi in private boasted about how he personally delivered a suitcase with a large amount to Vitaliy Zakharchenko, the Minister of Internal Affairs under Yanukovych’s regime.

Police «protectors» did not disdain organizing contraband cigarette shipments themselves.

According to the media, the direct contact with Kozlovskyi was a responsibility of a DCEC (Department for Combating Economic Crime) officer, Roman Mud, who personally organized channels for smuggling cigarettes to Europe.

Another aspect of the tobacco fraudsters’ activities was highlighted by ZIK, which described the scheme of their cooperation with conversion centers. Allow me to quote extensively: «The scheme traditionally features so-called «butterfly firms». After all, when importing, namely raw materials for the production of cigarettes (tobacco, foil, paper, etc.), which are purchased abroad, it is necessary to show the appropriate amount of cigarettes produced, their sales, and the payment of taxes from the actually produced products. However, such rules are unprofitable, as the «illegal» production line stands idle.

This is where Mr. Strilkovskyi and Co. (the owner of a «converter» - author) comes in to help. According to the scheme, he supposedly buys unused raw materials from the tobacco factory, processing pseudo-operations through already known firms. In reality, the raw materials go to the «illegal» line organized at the LLC «Lviv Tobacco Factory».

We are talking about hidden production of cigarettes which are distributed both in Ukraine and abroad (smuggling) for cash. At the same time, all the profit goes into the pocket, except for expenses related to operations with the puppet firms. Raw materials imported and actually sold to «butterfly firms» - according to the documents, there is nothing to complain about.

Besides the media, the criminal cigarette syndicate’s activities also attracted the attention of some political figures in Ukraine. The most active accuser of the Lviv tobacco company, and specifically Hryhoriy Kozlovskyi, in organizing contraband of «illegal» cigarettes to Europe was the governor of the Zakarpattia region, Hennadiy Moskal, who explicitly named the Vynnyky factory as the main supplier of cigarettes that were illegally transported abroad. In response, Kozlovskyi talked about a «great tobacco war» in Ukraine and attempts by American businesses to destroy the only Ukrainian tobacco factory.

He also boasted of finding manufacturers in Eastern Ukraine and Kyiv that counterfeited cigarettes under the name of the Lviv Tobacco Factory. As for cigarettes under other brands, for which he was accused, the tobacco magnate tactfully remained silent.

Oleksandr Svishchov

As already mentioned, despite Kozlovskyi behaving like the full-fledged master of the Lviv «tobacco factory», he is actually a kind of frontman for the business of a «group of comrades» who prefer to stay out of the spotlight. Among them stands out the notable figure of Oleksandr Svishchov, better known in certain circles by the nickname «Syedoy».

It is said that Svishchov can often be seen at the tobacco factory and conducts himself there not as a guest. Unlike the previously mentioned police «business partners», whose cooperation had a more enforced nature, this is about long-standing friendly relations.

For instance, the partners also share positions at the «Dynamo» water polo club in Lviv, and recently both built estates nearby in the Dubovyi Hai area of the village Pidberiztsi near Vynnyky. Incidentally, several well-known individuals in Lviv, who are closely connected to Kozlovskyi and Svishchov, also received land plots nearby, including Lviv City Council deputies «Poroshenko supporter» Petro Adamyk and «Svoboda» member Andriyan Hutnyk.

According to knowledgeable individuals, «Syedoy» is the actual partner of Kozlovskyi in all his businesses, both in the cigarettes and hotel-restaurant industries. However, sources do not venture to say who indeed plays the leading role in this tandem.

However, it is said that there are more serious figures in this group, including a person known as Yura «Tsyrkul» or Yura «Musician», who prefers to manage the group’s affairs from faraway gloomy London.

Hotelier and Restaurateur

The money earned from «cigarette smoke» is purposefully invested by Hryhoriy Kozlovskyi into the hotel and restaurant business.

To date, the businessman owns «Grand Hotel», the hotel and restaurant complex «Svyatoslav» in Vynnyky, the restaurants «Royal Brewery» and «Trali-vali», and the popular coffee shops «Pid Synyoyu Flyazhkoyu (Under the Blue Bottle)» and «Cabinet». The construction of a complex of five restaurants on Market Square continues and is referred to by the businessman as the «heart of Lviv».

The first step in this area was the opening of the «Svyatoslav» restaurant in 2005, as already noted. Since then, the establishment has been continuously developing, turning into a powerful recreational complex with over 50 hotel rooms, a summer courtyard, a bathhouse and sauna, a football field, and a tennis court.

It should be noted that when Vynnyky’s friendly businessman Mayor Serhiy Uvarov (2002-2006) affairs in the city were resolved like a magic wand’s wave, but when Teodor Hudzyak took over as mayor, problems began. The relationship reached its peak in 2009 when Kozlovskyi accused Hudzyak of hindering the hotel’s development. The businessman suggested that the official wanted a bribe for leniency and threatened to do everything to put Hudzyak behind bars.

Kozlovskyi kept his word. Teodor Hudzyak was detained by law enforcement and even sentenced to eight years of imprisonment. However, some time later, the appellate court overturned this verdict and acquitted Hudzyak.

Meanwhile, Serhiy Uvarov returned to the mayor’s seat. On a local level, Kozlovskyi’s problems disappeared, but it was apparent that Vynnyky was already too small for him. It was time to conquer Lviv.

The cigarette baron took on this business in his characteristic style, accompanying each subsequent step with loud scandals. First in line was the «Grand Hotel». This desirable piece of Lviv real estate attracted many wealthy individuals, starting with the Ukrainian American Marta Fedoriv and the now forgotten Lviv businessman Hennadiy Henshaft.

Afterwards, the building was managed by Bohdan Fedoryshyn, and after his death by Petro Dyminskyi. However, they all used the hotel only as tenants. In 2011, deputies of the Lviv City Council decided to privatize the «Grand Hotel» under the pretext of preparing the city for hosting the Euro-2012 football championship. The privatization was prepared specifically for Kozlovskyi, whose interests in the city council were openly lobbied by the so-called business wing of the «Svoboda» faction.

Lengthy negotiations with Andriy Sadovyi, who was equally concerned with the privatization of other hotels, included «Leopolis» and «Kyiv», eventually concluded successfully. Both objects’ privatization was voted on as a package deal, leaving both parties satisfied with each other. The eight-story building added to the «Grand Hotel» drastically changed Kryva Lypa.

While the privatization negotiations classically occurred in cabinet silence, the new owner’s subsequent steps stirred public interest.

Over three years, Kozlovskyi ambitiously endeavored to add a new eight-story building in the courtyard of the four-story hotel. This wouldn’t have been an issue if this courtyard didn’t open into the well-known to Lviv residents Kryva Lypa passageway - a cozy tourist enclave. All protests from the public led to nothing, and now the towering architectural chimera with massive glass structures is practically completed.

There is no doubt that the city council deputy Kozlovskyi will receive all the necessary permits to put the object into operation. The new owner laconically commented on the hotel extension situation to journalists: «If anyone thinks that the reconstruction is illegal, let them contact law enforcement agencies». And that’s that.

A little earlier, in 2013, a loud scandal arose around the construction of the «Royal Brewery». This restaurant is located in the very center of the city, in two buildings, with addresses at Staroyevreyska, 9, and Market Square, 16. If there were no issues with the building on Staroyevreyska, where the businessman had previously bought all the apartments, an entirely different situation developed with the house on Market Square. Several apartments there were owned by another well-known Lviv entrepreneur, Volodymyr Krekhovetskyi, who was not pleased with his neighbor’s audacious activity.

As a result, protests arose from the building’s residents, claiming the restaurant had illegally seized basements, and outraged public accusing Kozlovskyi of destroying an architectural landmark.

The newly emerged Lviv restaurateur also made the city council nervous, in typical fashion, by adding another building in the courtyard of the building on Staroyevreyska and setting up an unauthorized summer terrace, justifying it by saying that all new constructions were built within the courtyard of his privatized building. This entrance to the «Royal Brewery» is located in the controversial new building. And what? Protests died down, the outraged public, along with the city council, were appeased, and the «Royal Brewery» operates as if nothing happened: along with the new building, the illegal summer terrace, and occupied basements belonging to others.

And Hryhoriy Kozlovskyi once again realized that in Lviv, anything is allowed for the energetic and audacious. So the outcome of the new scandalous situation, this time concerning the reconstruction of the architectural monument at Market Square, 36, can already be predicted.

Despite all the weak attempts by law enforcement, city officials, and heritage preservation organizations to stop the work. Kozlovskyi even allows himself to mock his opponents, declaring that the works are entirely legal and that he has «all the documents except for a gynecologist’s certificate».

It remains to add that at Market Square, 36, where several restaurants are set to open, Kozlovskyi plans to execute another fantasy: to install a giant aquarium with seawater where sharks will swim. The quickly growing restaurant empire of Kozlovskyi also includes two iconic Lviv cafes, initiated by the legendary art association «Dzyga» - «Pid Synyoyu Flyazhkoyu» and «Cabinet».

The cafes are managed by LLC «Uniya», where until recently Kozlovskyi owned 96% of the enterprise. Last year, however, his name disappeared from the list of owners of this company in the State Register.

But the influence remains. And the highlight among the stories about our hero’s acquisitions of premises in the center of Lviv can be considered the history of the privatization of the «Kyiv» cinema on Shevchenko Avenue. LLC «Kinokompleks-Kyiv», equally owned by Hryhoriy Kozlovskyi and the 68-year-old mother of Oleksandr Svishchov, privatized these premises with an area of almost 836 square meters in the city center without competition for a price just over 8.1 million UAH.

Amid the process, Sadovyi suddenly came to his senses and decided to reverse everything by organizing two lawsuits. One concerned the recognition of the object’s privatization as illegal and the annulment of the relevant city council resolution. The other involved the annulment of the purchase agreement for the cinema.

However, such tricks do not work with our character. At the time when the case was still under consideration by the Higher Economic Court, the new owner conducted a lightning operation in several steps. On April 22, 2015, «Kinokompleks-Kyiv» obtained a certificate of ownership for the cinema premises. And the very next day, April 23, the procedure for terminating the company’s activity began. The ownership of the company changed hands, and a certain Yevhen Lobov became both the director and the chairman of the termination commission.

Interestingly, Kozlovskyi used Lobov for such deals before. A year earlier, another businessman’s company, LLC «Grand Hotel», was transferred under Lobov’s ownership, conveniently changing its name to «Road to the Future».

Kozlovskyi’s haste in changing the cinema complex’s ownership proved justified. On May 20, 2015, the Higher Economic Court upheld the cassation appeal of the Lviv City Council’s municipal property management in the case regarding the privatization of the «Kyiv» cinema.

Businessman Kozlovskyi first tasted political activity in 2003 when he became a deputy of the Lviv City Council. The circumstances of his election were linked to a sad event. Kozlovskyi won the by-elections following the sudden death of Andriy Mozharovskyi elected in Vynnyky. The latter, by the way, was then the head of a tobacco factory, so the rotation can be considered symbolic.

Hryhoriy Kozlovskyi won the elections under the flags of the Party of Regions. He did not particularly stand out in the then city council during Bunyak’s time, but since then, he has consistently tried to become a deputy of the Lviv City Council without missing any elections, interestingly, each time under different party banners.

In 2006, he tried to become a deputy as part of the Lytvyn’s People’s Block list but failed along with the entire group. In 2010, Kozlovskyi attempted to enter the city council in a majority district using the «Pora» brand — and again failed, losing to Rukh member Bohdan Leshnevskyi. Only in 2015 did his choice of political force turn out to be successful, and Kozlovskyi became a deputy as a member of the Petro Poroshenko Bloc «Solidarity» party.

It is hard to accuse Hryhoriy Kozlovskyi of political indiscrimination. Like most businessmen, he approaches the choice of a political horse, which should carry him to the top, pragmatically. As long as it fulfills its task, the breed or gait is a secondary matter.

Partially thanks to his activity and flamboyance, and partly due to the severe armed guards from «Titan» who invariably accompanied the tobacco magnate within the city council walls. Some perceive this display with respect, others with irony, and some with barely concealed contempt.

Thomas Brown