Ukraine tycoon Ihor Kolomoisky named suspect in fraud probe

The Security Service of Ukraine (SBU) has accused businessman Ihor Kolomoisky of fraud and money laundering, naming him a suspect in a criminal investigation. This action against Kolomoisky, one of Ukraine’s wealthiest individuals and a former supporter of President Volodymyr Zelenskiy, is part of Kyiv’s efforts to demonstrate progress in its crackdown on corruption amid ongoing warfare.

The SBU statement stated that “during 2013-2020, Ihor Kolomoisky legalized more than half a billion hryvnias ($14 million) by withdrawing them abroad and using the infrastructure of banks under (his) control.” Kolomoisky, who has previously denied allegations against him, could not be reached for comment.

The SBU has uploaded pictures on the Telegram messaging app, showing detectives stationed at Kolomoisky’s doorstep, delivering and obtaining his signature on legal documents.

Kolomoisky is considered part of the oligarch class, who gained immense wealth in the industrial sector following the collapse of the Soviet Union. He has exerted significant political and economic influence, even facing U.S. sanctions since 2021.

Prior to the Russian invasion in Ukraine last year, Zelenskiy and his team sought to limit the power of oligarchs by introducing legislation requiring their registration and preventing their involvement in politics. The ongoing war has diminished their power, with industrial assets destroyed in the eastern and southern regions, and centralized control implemented on their television channels.

Before his presidential victory, Zelenskiy gained fame as a comedian and portrayed a president on a show broadcasted on a TV channel owned by Kolomoisky. Zelenskiy denies any influence Kolomoisky may have over the government.

Zelenskiy has emphasized Ukraine’s efforts to crack down on corruption, particularly as the country seeks to join the European Union and secure financial aid for post-war reconstruction.

Yaroslav Zheleznyak and Iryna Gerashchenko, two lawmakers, suggested on Telegram that the move against Kolomoisky aims to generate positive publicity among Ukraine’s foreign supporters and address public concerns about corruption.

This is not the first time Kolomoisky has been involved in wartime actions. In November of last year, the state assumed control of stakes in strategic companies associated with him under wartime laws.

Kolomoisky’s home was searched earlier this year as part of a separate investigation into embezzlement and tax evasion at Ukraine’s two largest oil companies, in which he held partial ownership.

Kolomoisky previously owned PrivatBank, a leading Ukrainian bank that was nationalized in 2016 to reform the banking system. He has held assets in various sectors, including energy, banking, and influential television channels.

The United States imposed sanctions on Kolomoisky in 2021 for his alleged involvement in significant corruption. U.S. authorities have also accused him and a business partner of laundering stolen funds through the country, allegations that Kolomoisky has denied. ($1 = 36.5686 hryvnias)

(Reporting by Olena Harmash; Editing by Tomasz Janowski and Frances Kerry)