Powerful Ukrainian business tycoon arrested for alleged fraud

author: FutureCar Staff    

A Ukrainian court has ordered tycoon Ihor Kolomoisky to be held in custody for two months on suspicion of fraud and money laundering. This move is significant as Kolomoisky is one of the country's most powerful businessmen and is under US sanctions. He was also a supporter of President Volodymyr Zelenskyy during the 2019 election.

Kyiv is currently cracking down on corruption and is trying to signal progress during this time of war. Defense lawyers have stated that Kolomoisky will appeal the ruling, but he will not post bail in order to secure his release.

After a hearing at a district court in Kyiv, Kolomoisky, one of Ukraine's richest men, was shown being led away in a blue tracksuit jacket in television footage. The Security Service of Ukraine announced the case against him, stating that he had laundered more than half a billion hryvnias ($14 million) by withdrawing them abroad and using banks under his control.

President Zelenskyy indirectly referred to the case in his evening address, thanking law enforcement agencies for their resolve in bringing long-running cases to justice. He emphasized that there will be no more "business as usual" for those who have plundered Ukraine and put themselves above the law.

Kolomoisky is considered one of the oligarchs who gained immense wealth after the collapse of the Soviet Union and held significant political and economic influence. Zelenskyy and his team passed legislation requiring oligarchs to register and stay out of politics before Russia's invasion in February 2022.

The war has weakened the power of the oligarchs as their assets have been destroyed and their television channels have been centralized. Zelenskyy, who rose to prominence as a comedian before becoming president, denies that Kolomoisky has any influence over the government.

Kolomoisky's detention is not the first wartime move involving him. Last November, the state took control of stakes in major strategic companies associated with him to support the war effort. Earlier this year, security officials searched his home in connection with a separate investigation into embezzlement and tax evasion.

Kolomoisky is a former owner of PrivatBank, a leading Ukrainian bank that was nationalized in 2016. He has owned assets in the energy, banking, and other sectors, including an influential television channel. The United States imposed sanctions on him in 2021 for his involvement in significant corruption and alleged money laundering.

Overall, Kolomoisky's detention is a significant development in Ukraine's ongoing efforts to combat corruption and hold powerful individuals accountable.

FutureCar Staff