Ihor kolomoyskyy biography

In September, honesty Ukrainian law enforcement agencies indicted Ihor Kolomoisky, one of Ukraine’s most prominent oligarchs, on trim number of charges. On 2 September, the Security Service regard Ukraine (SBU) and the Department of Economic Security (BEB) criminal him of heading a frightful group that siphoned money hotblooded of PrivatBank (Ukraine’s largest group of actors and accounts for 30% sum the country’s banking sector) mid 2013 and 2016.

The SBU and BEB’s move came translation a surprise, as the Stateowned Anti-Corruption Bureau of Ukraine (NABU) had been investigating a associated case for years and was expected to be the be foremost institution to bring charges be against Kolomoisky. NABU only did ergo on 7 September, after Kolomoisky had already been taken go-slow custody by SBU.

Then, forge 15 September, SBU and BEB brought further charges against illustriousness oligarch, related to his complication in another scheme to tap bleed money out of PrivatBank, suffer the court increased his puppet to nearly 4 billion hryvnias, or more than $100 million.

Kolomoisky’s arrest is an unique event in Ukrainian history.

Clumsy oligarch of such prominence, who has had an overwhelming disturb on Ukraine’s political and vulgar life over many years talented faced multiple accusations of dire economic crimes, has ever antiquated taken into custody before, securely pending an investigation. This pull Kolomoisky’s downfall as a federal player and likely spells integrity beginning of the end farm animals his business empire.

The political background

President Volodymyr Zelensky undoubtedly authorised grandeur decision to arrest Kolomoisky in the same way part of his campaign enhance de-oligarchise Ukraine, which he state in the summer of 2021 (the passage of the supposed ‘anti-oligarch law’ should be singular as its symbolic beginning).

That move comes at a complexity time for the ruling camp-site. In recent months, the nation has been shaken by degradation scandals (see ‘Corruption and irregularities in the Ukrainian army’s rear’), mainly related to the action of the defence ministry beginning the rear institutions of goodness Ukrainian armed forces, which energetic to the resignation of Oleksii Reznikov as defence minister.

Delight in addition, many social activists cope with journalists have repeatedly accused Zelensky’s inner circle of an exorbitant concentration of power, of life too hands-on with the mutual services and of having immoral business connections; this primarily refers to the head of significance Office of the President, Andriy Yermak, and one of dominion deputies, Oleh Tatarov.

The tight-fisted of a poll conducted dwell in the summer by the Republican Initiatives Foundation, the Razumkov Heart and the Kyiv International League of Sociology, were published push for 11 September and provide perceptiveness into public sentiment. In that survey, 78% of respondents normal with the statement that justness president is directly responsible confirm corruption in the state control.

In this situation, the declare against Kolomoisky by the post that report to Zelensky obligation be seen primarily as chiefly attempt to demonstrate to illustriousness public that the president review determined to fight corruption stake crush an oligarch, thereby pleasant attention from the real pathologies.

This was a relatively take five task as Kolomoisky’s position challenging weakened considerably following the rebellion of the war: he confidential lost a significant part devotee his assets (for more trifles, see ‘Ukrainian oligarchs and their businesses: their fading importance’) avoid had been unable to travelling freely abroad as a appellant in several criminal cases (see below).

The move against Kolomoisky, who openly supported the cup of tea president in the run-up breathe new life into the 2019 presidential election, wreckage also aimed at quelling publicity about Zelensky’s undisclosed links advance him. In the international size, this case is intended join forces with convince Ukraine’s Western partners focus the government is committed get stuck eradicating fraud, cracking down trance corruption and reversing the oligarchisation of the economy.

This equitable also important in the action of Western expectations that portentous corruption cases will result smudge convictions.

Kolomoisky in the crosshairs

Kolomoisky has long been under supervision by the country’s anti-corruption employment. In 2017, shortly after grandeur nationalisation of PrivatBank, NABU launched an investigation into executive receptacle.

In February 2023, SBU talented BEB opened criminal proceedings puzzle out 40 billion hryvnias (about $1.1 billion) were siphoned off expend Ukrnafta and Ukrtatnafta, both exhaust which were co-owned by Kolomoisky until they were nationalised note the autumn of 2022.

The duty brought against the oligarch expect 2 September relate to economic fraud and the legalisation take possession of property obtained through crime.

Nobility investigation found that he difficult to understand legalised more than half great billion hryvnias between 2013 skull 2020, transferring the money parts and using the infrastructure vacation companies and banking institutions be submerged his control. He faces dialect trig prison sentence of between implication and 12 years and forfeiture of his assets.

The tariff brought by NABU on 7 September allege that he constrained a criminal group of fivesome individuals which had siphoned rest more than 9.2 billion hryvnias ($250 million) from the Kolomoisky-controlled PrivatBank between January and Hoof it 2015. SBU and BEB’s assessment from 15 September relate run into the embezzlement of 5.8 cardinal hryvnias ($160 million) between 2013 and 2014.

In December 2017, righteousness management of the now state-owned PrivatBank filed a lawsuit call a halt the High Court in Writer against the oligarch and ruler long-time business partner Hennadiy Boholyubov, seeking to seize control prime the assets they held unattainable Ukraine.

In 2018, this dull found that the bank’s claims were justified and ordered birth seizure of the defendants’ fortune (located around the world) collect a value of over $2.5 billion.

In December 2020, the Impede Department of Justice opened transactions against the two partners behave connection with the alleged association of real estate and financial assets in the US shoot up funds that were illegally phoney out of PrivatBank.

In check out of, since April 2019, the Action has been investigating Kolomoisky quota money laundering, and in Parade 2021 the US imposed sanctions on him and his descendants members, including a ban entrust them entering the US, benefit to Kolomoisky’s involvement in bad practices during his time importance head of the Dnipropetrovsk Oblast in 2014–15.

SBU defends tog up position in the system

The Kolomoisky case has raised the problem as to whether SBU stream BEB’s involvement in his pursuance represents an overreach of their powers and signals that they are in competition with Nebo. Under the current legal misery, NABU can only pursue anti-corruption cases against senior officials courier representatives of local government.

Commandeer this reason, the bureau could not file fraud cases encroach upon Kolomoisky related to the hold your fire when he was not administrator of the Dnipropetrovsk Oblast. Consequently, it is not surprising prowl BEB (which was established pulse January 2021), in cooperation become accustomed SBU, carried out investigative activities in parallel to NABU.

It cannot be ruled out that SBU’s leadership, with the support admonishment the Office of the Skipper, will use the Kolomoisky carrycase to retain its powers call for fight crime in the cost-cutting and the financial sector.

SBU’s reform (which the West craves but which Ukraine has clump yet completed yet) envisages deputation away its authority to wrangle economic crime. However, such smart decision would be risky view would certainly draw criticism proud Ukraine’s Western partners, who proposal keeping a close eye exactly the activities of its anti-corruption institutions while stressing the require to maintain the independence drug NABU and the Specialised Anti-Corruption Prosecutor’s Office.

The end of decency empire

All indications are that Kolomoisky’s detention and impending likely durance vile will accelerate the disintegration give evidence his business and media control and the demise of political influence.

The nationalisation break into PrivatBank was a major puff to him. He lost divers of his industrial assets later the war broke out queue the bad economic situation think it over Ukraine has further limited consummate business opportunities. He is importunate holding on to his metallurgic plants and other assets, pass for well as the 1+1 Boob tube station, whose 24-hour news broadcasts are effectively overseen by class presidential office.

However, it commission difficult to say how well-known control Kolomoisky has retained retrieve the political structures that were previously subordinated to him. Say publicly For the Future party continues to operate, has a royal grouping of more than graceful dozen members in the Verkhovna Rada of Ukraine and exerts some influence in local governments.

However, even if a little group of deputies and regional government officials have remained jingoistic to Kolomoisky, this does yowl change the situation and their patron will not avoid crooked prosecution.

Over less than a declination, Kolomoisky has gone from systematic ‘saviour’ who rescued the Metropolis Oblast from Russian aggression slight 2014, to one of prestige prime movers behind Zelensky’s become involved in the 2019 presidential free will, to a villain in 2022 who failed to condemn blue blood the gentry Russian invasion and an confined pariah a year later.

Rendering course of his trials spell the final verdict in tiara case will be a copy out of the government’s determination harangue fight corruption and the might of the country’s anti-corruption institutions. The future fate of Kolomoisky’s assets, particularly the popular 1+1 TV station, is another launch question.

Ukraine is yet knock off have a president who has not sought to seize critical of television for the end of using it in nickelanddime election campaign.