Smiltenes Municipal Officials Entangled in Ukrainian Investigation Over Joint Venture
Two municipal officials in Smiltene, Latvia, are facing scrutiny after it was revealed they held stakes in a company whose Ukrainian co-founder is the subject of a criminal investigation in Ukraine, according to Latvian broadcaster TV3.
The business, SIA White Elephant, was established in 2021 by Ukrainian entrepreneur Bohdans Tomins alongside Matīss Mežulis—son of former Smiltene mayor and current Ministry of Environmental Protection and Regional Development (VARAM) parliamentary secretary Ainārs Mežulis—and local entrepreneur and municipal councillor Dainis Aļeksējevs alongside his son Vairis, TV3 reported.
Rapid Commercial Growth Amid Cross-Border Trade
Following its registration in 2021 at an address shared by Aļeksējevs’s own companies, SIA White Elephant initially focused on importing and exporting goods between Latvia and Ukraine. According to financial reports cited by the broadcaster, the firm achieved significant turnover trading in grain, sunflower oil, and building materials.
Ainārs Mežulis stated that he had known Tomins for years after being introduced by the honorary consul in Lviv, noting that Tomins initially sought to purchase building materials from Latvian companies before establishing his own enterprise in the country. Matīss Mežulis, who currently serves as the head of the Smiltene Municipality Sports Department, explained that Tomins had requested assistance in opening a business in Latvia, prompting the creation of a joint venture that included Latvian citizens.
Ukrainian Security Service Investigation and Allegations
While SIA White Elephant expanded its operations in Latvia, Ukrainian authorities launched separate proceedings into Tomins’s broader business network. According to the broadcaster, the Security Service of Ukraine (SBU) initiated a criminal process against Tomins for alleged cooperation with the aggressor state.
Investigators in Ukraine allege that multiple firms operated by Tomins imported insulation boards from the Russian manufacturer Penoplex through Moldova, with payments routed to accounts at Russia’s Sberbank. Investigators in the Chernihiv region are also examining a group of nine enterprises regarding value-added tax fraud, the broadcaster reported.
Dainis Aļeksējevs told the broadcaster that all transactions conducted within Latvia complied fully with national legislation, noting that neither the State Revenue Service nor the Customs Administration raised questions regarding the firm’s documentation and formal procedures. However, Aļeksējevs confirmed that an investigation has also been initiated against him by the Ukrainian prosecutor’s office.
Corporate Shifts Following an Ādaži Warehouse Fire
The operational landscape for SIA White Elephant shifted in 2024 when a fire destroyed the company’s building materials warehouse in Ādaži. The blaze resulted in estimated losses of 112 000 and caused injuries to two firefighters, prompting a police investigation that remains active pending additional expert examinations, according to the broadcaster.
In the month following the fire, the Aļeksējevs family transferred their shares in the Latvian company to Tomins, as reported by LA.lv. Corporate registry records cited by LA.lv indicate that ownership of SIA White Elephant is currently split between Tomins, who holds a 79 percent stake, and Matīss Mežulis, who retains a 21 percent share. Financial filings show the company’s turnover was 1,26 miljoni eiro in 2025, generating a profit of 34 362 eiro with a staff of four employees.
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