Ukraine billionaire detained for fraud accusations

author: FutureCar Staff    

A Ukrainian court has ordered the arrest of billionaire businessman Ihor Kolomoisky for a period of two months on charges of fraud and money laundering. This move is part of Ukraine's ongoing efforts to combat corruption within the country.

The court has given Kolomoisky the option to post bail amounting to over 509 million hryvnias, which is equivalent to more than $13 million.

In a veiled reference to the legal proceedings against Kolomoisky, President Volodymyr Zelenskyy expressed his gratitude to law enforcement agencies for their commitment to bringing long-standing cases to a fair resolution.

According to Al Jazeera's Rob McBride, the court's decision has come as a surprise to many. Kolomoisky is a well-known and wealthy oligarch in Ukraine, who had supported Zelenskyy's presidential campaign in 2019. He has been under US sanctions since 2021.

This arrest comes amidst a broader campaign by the Ukrainian government to tackle corruption and demonstrate its commitment to addressing this issue. Several officials have already been dismissed and prosecuted as part of these efforts.

The Security Service of Ukraine (SBU), the country's main security agency, has named Kolomoisky as a suspect in a criminal investigation. The SBU alleges that he laundered over half a billion hryvnias ($14 million) by transferring funds abroad using banks under his control.

Kolomoisky, who has previously denied any wrongdoing, has not been available for comment. The SBU has released pictures on the Telegram messaging app, showing detectives at Kolomoisky's door, serving him with documents and obtaining his signature.

Kolomoisky is considered one of the oligarchs who amassed significant wealth following the collapse of the Soviet Union in 1991. These oligarchs have wielded substantial political and economic influence in Ukraine.

Prior to Russia's invasion of Ukraine in 2020, Zelenskyy and his team attempted to limit the power of the oligarchs through legislation that required them to register and stay out of politics. The ongoing war has further diminished their influence as key industrial assets have been destroyed and their television channels have been operating under centralized control.

Zelenskyy, who gained prominence as a comedian and played the role of president in a TV show aired on a channel owned by Kolomoisky, denies any influence from the businessman over his government.

In an effort to secure financial assistance for the country's reconstruction after months of war, Zelenskyy has emphasized Ukraine's crackdown on corruption as it seeks to join the European Union.

Some lawmakers have suggested that the action against Kolomoisky is intended to generate positive publicity among Ukraine's foreign backers and its war-weary public, who are concerned about entrenched corruption.

This is not the first time Kolomoisky has been targeted during the war. In November, the state took control of stakes in major strategic companies associated with him, citing wartime laws to support the war effort. Earlier this year, security officials searched Kolomoisky's home in connection with a separate investigation into embezzlement and tax evasion at two of the country's largest oil companies, in which he had partial ownership.

Kolomoisky was previously the owner of PrivatBank, one of Ukraine's leading banks, which was nationalized in 2016 as part of a broader effort to clean up the banking system. He has held various assets in the energy, banking, and other sectors, including ownership of one of Ukraine's most influential television channels.

In 2021, the United States imposed sanctions on Kolomoisky, citing his involvement in significant corruption. US authorities have also alleged that he and a business partner laundered stolen funds through the US, although Kolomoisky has denied any wrongdoing.

FutureCar Staff