Monday, September 18, 2023

Zelensky-Backed Billionaire Arrested For Fraud and Money Laundering

 

Ihor Kolomoisky is one of the richest people in Ukraine, with an estimated net worth of slightly under $1.7 billion. He was detained over the weekend by Ukrainian authorities on a number of fraud and money laundering accusations, just as the government is attempting to demonstrate to the outside world that it is capable of fighting systemic corruption.

According to a statement released on Saturday by the Security Service of Ukraine (SBU), the billionaire – who is described as the “de facto owner of a large financial and industrial group” – allegedly attempted to launder more than 500 million Ukrainian hryvnia ($13.5 million) by “transferring it abroad, while using the infrastructure of banking institutions controlled by him.”

A Kyiv court has ordered Igor Kolomoisky to pretrial detention for two months amid an ongoing investigation. The New York Times highlighted Kolomoisky’s connections to President Volodymyr Zelensky and his funding of extremist private militia armies. His business interests include oil and banking, and he was once considered a patron of Zelensky. Suspicions of corruption and embezzlement have plagued him for years. The arrest comes as Zelensky has sacked his own defense minister, Oleksii Reznikov, who has gone through over 550 days of full-scale war. Hunter Biden, who was degrees of separation away from Kolomoisky, was connected to shady Bursima relationships.

Ukraine’s defense minister, Reznikov, has been implicated in an anti-graft probe into the military’s inflated prices for imported items and a recent recruiting scandal. The country’s application to join the European Union faces challenges due to its ranking among Europe’s most corrupt societies. Russian media has highlighted Kolomoysky’s involvement in politics, including his appointment as governor of the Dnepropetrovsk Region in 2014 and his nationalization of PrivatBank in 2016. Kolomoysky is also considered to have played a significant role in the rise of President Vladimir Zelensky. Washington has likely brought pressure on Kyiv, as the US State Dept. sanctioned Kolomoysky and his family members in 2021.

Ukrainian billionaire Ihor Kolomoisky has suggested Ukraine should abandon the West and return to Russia, according to an interview with The New York Times. Kolomoisky’s business ties to Ukrainian President Volodymyr Zelenskiy have been under scrutiny since the start of his election campaign this year. Both men have rejected suggestions that Kolomoisky has behind-the-scenes influence over Zelenskiy. The Moscow Times has picked out quotes from Kolomoisky’s emotional and profanity-laced interview, which The New York Times says marks a “remarkable change of heart” for Russia’s former opponent.

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