Billionaire Ihor Kolomoisky: The Surprising Detention and Ongoing Investigations

Detention and Allegations
Investigations in Ukraine
NABU’s Concerns
U.S. Criminal Inquiry and Investigations
Sanctions and Consequences
President Volodymyr Zelensky’s Response

I. Detention and Allegations

Ihor Kolomoisky, the Ukrainian-Israeli-Cypriot billionaire, was detained by the Security Service of Ukraine (SBU) in February 2021 on allegations of embezzlement and money laundering, worth approximately half a billion hryvnias ($14 million). Kolomoisky, worth an estimated $1.67 billion, was ordered to be held in pretrial detention for two months in Kyiv while investigations are underway.

II. Investigations in Ukraine

Ukrainian authorities accuse Kolomoisky and his associates of laundering funds through banks under their control, including the country’s largest lender, Privatbank. Sources familiar with the investigation indicate that the funds were transferred abroad between 2013 and 2020.

Embezzlement Allegations

The National Anti-Corruption Bureau of Ukraine (NABU) is separately investigating allegations of embezzlement using an offshore company worth over $250 million during Kolomoisky’s tenure as the head of the Dnipropetrovsk region, between January and March 2015.

III. NABU’s Concerns

The recent detention has reportedly raised concerns within the NABU as Kolomoisky has sought refuge within the pretrial detention center, allegedly evading their investigative efforts. Such evasion could potentially hamper Ukraine’s efforts to tackle financial crimes and undermine ongoing investigations.

IV. U.S. Criminal Inquiry and Investigations

U.S. investigators are probing Kolomoisky’s business dealings in the United States, where he reportedly amassed a real estate empire with over 22 assets acquired between 2010 and 2020. The most prominent properties include a Cleveland skyscraper, the former Motorola complex in northern Illinois, and the former headquarters of Mary Kay Cosmetics in Dallas.

Transfer of Funds from Deutsche Bank

An investigation led by the International Consortium of Investigative Journalists and Buzzfeed News found that Deutsche Bank transferred over $750 million to Kolomoisky’s U.S.-based business interests.

Seized Properties and Probes

U.S. authorities have seized multiple Kolomoisky-linked properties as part of ongoing probes into money laundering and criminal activities. Seized assets include a penthouse in Miami and a Cleveland office.

V. Sanctions and Consequences

The U.S. imposed sanctions on Kolomoisky and his alliance in March 2021, following allegations of abuse of power while serving as the governor of his home province from 2014 to 2015. Zelensky, the current President of Ukraine, publicly endorsed the sanctions to assert his administration’s commitment to upholding the rule of law.

VI. President Volodymyr Zelensky’s Response

Recent events mark a significant transformation in Kolomoisky’s influence in Ukraine, with his companies losing control over state-owned entities such as Ukrnafta, Ukrtatnafta, and numerous others. President Zelensky has made statements reflecting a new stance on those who “exploited Ukraine and operated above the law,” emphasizing that “the law must work” and signaling the strengthening of Ukraine’s commitment to anti-corruption actions.