LONDON (Reuters) -Ukraine’s PrivatBank on Wednesday won its London lawsuit against its former owners for siphoning off nearly $2 billion from the country’s largest lender.
PrivatBank accused Ihor Kolomoisky – a once-powerful businessman and supporter of President Volodymyr Zelenskiy’s 2019 election run – and Gennadiy Bogolyubov of orchestrating sham loans and supply agreements between 2013 and 2014.
The lender has pursued Kolomoisky and Bogolyubov in the English courts since 2017, the year after it was nationalised as part of a clean-up of Ukraine’s finance system.
Kolomoisky, who has been detained since September 2023 on suspicion of fraud and money laundering, and Bogolyubov – whom Ukrainian investigators this month said illegally left the country – both denied any wrongdoing.
Their lawyers said at a trial starting in June 2023 that there was no misappropriation from PrivatBank, which they argue had no evidence they had any knowledge of, or involvement in, the alleged fraud.
The case was closely watched by politicians and investors as a test of Zelenskiy’s willingness to pursue reforms and tackle the corruption which has blighted Ukraine for years, amid its ongoing war with Russia.
Judge William Trowler ruled in favour of PrivatBank on its civil case, saying Kolomoisky and Bogolyubov were “jointly and severally liable” for around $1.9 billion, less any sums which may have previously been received by the bank.
Ukraine’s Prime Minister Yulia Svyrydenko said in a statement the decision was “an undeniable victory”.
“Ukraine consistently protects the interests of its citizens and stands for the truth. This decision demonstrates that the state is able to successfully defend its interests internationally.”
Any application for permission to appeal by Kolomoisky and Bogolyubov was adjourned to a further hearing in October.
Wednesday’s ruling comes after President Volodymyr Zelenskiy recently faced a rare outburst of public criticism over a move to grant more political control of Ukraine’s anti-corruption agencies to the prosecutor general, which he promptly reversed amid considerable anger.
Kolomoisky is among the tycoons who built their fortunes in the ashes of the Soviet Union and amassed political power in Ukraine’s fragile democracy.
The businessman was once a backer of Zelenskiy, who rose to prominence as a comedian and played the role of president in Servant of the People, a show aired on a Kolomoisky-owned TV station.
But Kolomoisky has fallen foul of a crackdown on individuals who wield outsized political influence launched by Zelenskiy, who has denied having personal ties to the businessman.
(Reporting by Sam Tobin; additional reporting by Olena Harmash in Kyiv; editing by Sarah Young and Jan Harvey)
