Ihor Kolomoisky, a prominent Ukraine tycoon, has been arrested and charged with fraud and money laundering related to his oil and gas holdings. The arrest is part of an on-going anti-corruption crackdown spearheaded by Ukraine’s main security agency, the Security Service of Ukraine (SBU). Local news reports from Ukraine indicate that the Shevchenkivskyi District Court of Kyiv has ordered Kolomoisky to be detained until the end of October, with the option to post a bail exceeding $14 million provided he meets several conditions, including a prohibition on foreign travel. The investigations, which are overseen by the Ukraine Prosecutor’s Office, are still underway.
The statement released by the SBU alleges that between 2013 and 2020, Kolomoisky laundered over half a billion Ukrainian hryvnia through banks under his control. Prior to government seizure due to missed tax payments amounting to over $80 million in 2022, Kolomoisky had control over Ukrtatnfta, a Ukrainian oil refining company. He was also a co-owner of PrivatBank, which was nationalized in 2016 following the discovery of $5.5 billion in missing funds.
The arrest incident aligns with the larger crackdown on illicit wealth, an anti-corruption drive that began late 2021, in the midst of the Russian invasion. The drive involves the seizure of illegally-acquired assets belonging to high-ranking figures and oligarchs. SBU Head Ivan Bakanov recently released a statement, emphasizing the destructive effect of domestic corruption on Ukraine’s economy, especially in a time of conflict with Russia.
In his statement, Bakanov unveiled illicit activities by criminal gangs that included attempts to export military equipment and artillery components in contravention of control procedures. The anti-corruption initiatives also target during this time are officials exploiting their power to award profitable contracts to private entities, particularly in the agricultural sector, leading to significant state losses and inflated consumer prices during the war.
For more on this story, visit: JURIST – News