Ukrainian Oligarch Ihor Kolomoisky Accused of Fraudulent Activities in Banking Industry

Arrest and Detention

Ihor Kolomoisky, a 60-year-old powerful Ukrainian billionaire, was arrested and ordered to be held in pretrial detention for two months by a Kyiv court. The oligarch is accused of embezzling millions of dollars from Ukraine’s largest bank, Privatbank, and laundering the funds through offshore companies.

Allegations of Embezzlement

Kolomoisky is facing allegations that he embezzled over $250 million using an offshore company while he was head of the Dnipropetrovsk region. The National Anti-Corruption Bureau of Ukraine (NABU) has informed Kolomoisky and five associates that they are suspected of criminal activity.

President Zelensky’s Response

The arrest comes as a major blow to Kolomoisky’s influence in Ukraine, with President Volodymyr Zelensky signaling a shift towards holding accountable those who have “exploited” the country and operated above the law. The president praised law enforcement officers for their determination to bring every case to an end and said that the law must work.

Concerns Among Investigators

Kolomoisky’s detention has raised concerns among investigators within NABU, who believe it could allow him to evade their investigation. A source close to the situation told ICIJ that this is one of the biggest attacks on NABU, as Kolomoisky is seeking refuge in a pretrial detention center and evading their investigative efforts.

US Investigation

The US government has also been investigating Kolomoisky’s alleged involvement in laundering hundreds of millions of dollars through US real estate. He is currently under investigation by a US federal grand jury and could potentially face extradition if convicted.

Business Empire

Kolomoisky’s business empire spans oil, banking, and real estate, with his media company playing a significant role in shaping Volodymyr Zelensky’s successful presidential campaign. However, his influence has waned in recent years, with him losing control over state-own entities such as Ukrnafta and Ukrtatnafta.

Previous Allegations

The International Consortium of Investigative Journalists (ICIJ) and BuzzFeed News have previously reported on Kolomoisky’s alleged fraudulent activities, including a major real estate buying spree that left a trail of vacant and boarded-up buildings, unpaid property taxes, and hazardous factory conditions.

Denials and Appeal Plans

Kolomoisky has denied all allegations against him and plans to appeal the ruling. His lawyers claim that he will cooperate with investigators but has chosen not to post bail, opting instead to remain in pretrial detention.