Ukrainian Tycoon Kolomoisky Detained for Fraud and Money Laundering
In a significant move against corruption, a Ukrainian court has ordered tycoon Ihor Kolomoisky to be held in custody for two months on suspicion of fraud and money laundering. The detention of Kolomoisky, who is under US sanctions, comes as Ukraine aims to demonstrate progress in its crackdown on corruption.
Kolomoisky, one of the country’s most powerful businessmen and a former supporter of President Volodymyr Zelenskiy, had backed Zelenskiy’s election in 2019. However, the court’s decision to detain him suggests a willingness on the part of the government to hold even the most influential individuals accountable.
Defence lawyers for Kolomoisky have announced their intention to appeal the ruling, questioning its legality. However, they have also stated that their client will not post bail, even though it amounts to almost US$14 million, in order to secure his release.
The Security Service of Ukraine, which initiated the case against Kolomoisky, stated that it had evidence proving that he had legalised more than half a billion hryvnias (RM65 million) by withdrawing them abroad and using the infrastructure of banks under (his) control between 2013 and 2020.
President Volodymyr Zelenskiy, indirectly referring to the case, expressed his gratitude to law enforcement agencies for their resolve in bringing long-running cases to justice during his evening address. He emphasized that there would no longer be tolerance for those who had plundered Ukraine and put themselves above the law.
Ihor Kolomoisky is considered one of Ukraine’s oligarchs who amassed significant wealth and wielded immense political and economic influence after the collapse of the Soviet Union in 1991. However, the ongoing war with Russia has resulted in a decline in the power of oligarchs as their industrial assets were destroyed in the eastern and southern regions of Ukraine.
Notably, Zelenskiy, himself a former comedian, rose to fame through a television show aired on a channel owned by Kolomoisky. However, he denies allegations that Kolomoisky has any influence over his government.
Kolomoisky’s detention is not the first wartime move targeting him. Last year, the state took control of stakes in major strategic companies associated with the businessman, invoking wartime laws to support the war effort. Earlier this year, security officials also searched Kolomoisky’s home in connection with a separate investigation into embezzlement and tax evasion at the country’s two largest oil companies, both of which he partially owns.
Ihor Kolomoisky was the former owner of PrivatBank, a leading Ukrainian bank that was nationalized in 2016 as part of a larger effort to clean up the country’s banking system. He has also held assets in the energy, banking, and other sectors, including an influential television channel.
In 2021, the United States imposed sanctions on Kolomoisky due to his alleged involvement in significant corruption. U.S. authorities further accused him and a business partner of laundering stolen funds through the United States. Kolomoisky has consistently denied any wrongdoing.
As Ukraine continues its fight against corruption and seeks to join the European Union, the detention of a prominent tycoon like Kolomoisky is seen as a step toward demonstrating the country’s commitment to the rule of law and accountability.
