Nationalized PrivatBank won a large-scale trial in London against its former owners Igor Kolomoiskyi and Gennadiy Bogolyubov. About this reported in the bank after the announcement of the court decision.
“This judgment is a complete victory for the bank, which was nationalized by the Ukrainian government in December 2016. In a judgment handed down today, the High Court in London found that these two individuals misappropriated almost $2 billion of the bank’s funds through a highly complex re-lending scheme that benefited the individual defendants.”, – the official statement says.
The bank emphasized that at the time of nationalization it lacked capital in the amount of about $5.5 billion, which was later compensated by the state. The document states that Judge Trauer, after considering the case, rejected the arguments of Kolomoiskyi and Bogolyubov about the lack of evidence of their involvement.
“Their objections are ‘entirely based on dishonesty'”, says the court’s decision.
In addition, the court found that Kolomoisky “seems to have considered himself above the law” and that it was “dishonest on Bogolyubov’s part” to use misleading documents to hide his involvement in embezzlement schemes.
According to PrivatBank, the full amount to be reimbursed by the former owners has yet to be determined, but it is already more than $1.7 billion, excluding interest over a period of more than ten years.
“The full amount to be paid to the bank, including interest and legal costs, will be determined at the next hearing later this year and is likely to total well over $2 billion.”, – stated in the release.
It is also reported that neither Kolomoisky nor Bogolyubov testified in court in 2023:
“They were both aware that by testifying in person they would have exposed themselves to questions about their role in the misappropriation of funds to which they would not have had a convincing answer, so they decided not to do so.”
The court recognized that Kolomoisky deliberately destroyed electronic data that could relate to the case, and Bogolyubov acted according to a similar principle – destroying documents related to the proceedings.
Back in 2017, PrivatBank received a worldwide seizure of the assets of the defendants. The financial institution, together with legal advisers, will now focus on the recovery phase.
“This decision underscores the strength and integrity of the most reliable financial institution in Ukraine, and we believe that it will be the first in a series of victories at the international level that will ensure justice for the bank and, more importantly, for the people of Ukraine. Our process does not end here, as we will begin to recover the sums that rightfully belong to PrivatBank.”, – commented the chairman of the supervisory board of the bank, Nils Melngailis.
