“No Basis to Return Privatbank to Kolomoisky” - Zelenskyy Administration

24 October 2019 17:25

Zelenskyy Chief of Staff Andriy Bohdan, speaking during a meeting with ambassadors from G7 nations, stated unambiguously, for the first time, that there is absolutely no basis for the return of the nationalized Privatbank to Kolomoisky.

That’s according to a press release put out by the Office of the President. Prior to his role as chief of staff, Andriy Bohdan served as legal council for former Privatbank owner Ihor Kolomoisky.

The government stated that it has invested $6.1 billion into Privatbank following nationalization.

“We think that despite any decisions by the courts, there is no basis for the return of the nationalized Privatbank to its former shareholders,” said the Office of the President.

The meeting with G7 ambassadors focused on negotiations with the IMF, banking sector reform, and getting back funds from bankrupt banks.

On October 17, The Commercial Court of Kyiv, postponed issuing its decision on the return of Privatbank shares to Kolomoisky. The reason behind the postponement is to wait for the results of an appeal by the government against a prior ruling by an administrative court that found the nationalization of Privatbank and transfer of ownership from Kolomoisky to be illegal.

Privatbank was nationalized in 2016, following revelations of a $5.5 billion hole in the bank’s finances, rendering it de facto insolvent. Allegations arose that the bank’s former owners, Ihor Kolomoisky and Hennadiy Boholyubov, had used Privatbank funds to loan money to their other businesses repayment.

Both former shareholders have denied the allegations. Ihor Kolomoisky has stated that he believes the nationalization of the bank to be an illegal seizure of property, while international partners such as the IMF have consistently pushed the government to regain the missing funds.