Billion-dollar losses: How the government is managing the valuable assets of the former owners of PrivatBank.
At the end of 2024, "PrivatBank" auctioned off part of its claims under loan agreements with LLC "Borivazh," which were secured by a grain terminal in the "Yuzhny" port. The auction resulted in the lot being sold at a reduced price of 2 billion hryvnias. More details about this and how the state manages other valuable assets of the former owners of "PrivatBank" can be found in the article by RBC-Ukraine.
"The most influential oligarch before me (Kolomoisky, — ed.) is in prison, and no one has been able to do anything with him. Neither the USA, despite all their efforts regarding money withdrawal and so on. There are criminal cases in the USA. Nor has Europe achieved anything with him," stated President Volodymyr Zelensky in a recent interview with Lex Fridman.
However, the reality is more complex. A decision from the London court regarding PrivatBank's lawsuit against the former owners is expected soon.
The hearings concluded in the fall of 2023, and a verdict was anticipated by mid-2024. Nevertheless, the judge is still reviewing the case materials, and Kolomoisky and Boholyubov's assets remain frozen.
Among the arrested assets of the former privatizers are shares in EVRAZ, oil assets (~$380 million), metallurgical assets in Ukraine and the USA (> $400 million), chemical assets (~$60 million), seven regional energy companies (~$80 million), several television and media companies (~$69 million), "International Airlines of Ukraine," "Borivazh," and other ports (~$20 million), the gold mining company Nsuta (Ghana), the yachts "Sirocco" and "Lauren L"/aircraft (~$165 million), investment portfolios, etc.
In 2022, the state forcibly nationalized shares of "Ukrnafta" and "UkrTatNafta." However, Kolomoisky labeled the decision as "raiding" and is contesting it, despite being in custody.
Sale of the Port
Against the backdrop of asset nationalization, the state is selling key assets at a discount. On December 23, "PrivatBank" put up for sale part of its claims under loan agreements with LLC "Borivazh" amounting to nearly 3 billion 556 million hryvnias.
The starting price of the lot was approximately 3 billion 428 million hryvnias. However, following the auction with only one participant, it was sold at a reduced price of 2 billion hryvnias.
According to former PrivatBank shareholder Oleksiy Martynov, this auction caused the state a loss of at least 3 billion hryvnias.
Additionally, "PrivatBank" sold loans to LLC "Borivazh," despite a court ban and an ongoing criminal case. The buyer was a company linked to businessman Serhiy Tihipko.
As RBC-Ukraine reported, NABU has already opened a criminal case regarding the criminal negligence of PrivatBank officials. This concerns missed opportunities to recover compensations from Kolomoisky and Boholyubov, who, according to estimates from the NBU, withdrew $5.5 billion from the bank.
Lack of Strategy
Despite having ample time since 2017 to develop a strategy for recovering funds, no effective actions have been taken. Official data indicates that the London court has frozen assets worth over $3 billion, yet the state shows no determination in their effective utilization.
To avoid a scenario where the superyacht Lauren L, valued at $75 million, is sold for the price of a Renault Logan, it is essential to reassess the approaches to managing these assets.
Overall, the absence of strategic vision, opaque sales schemes, and indifference to billion-dollar losses raise doubts about the state's ability to manage nationalized assets effectively.
In this context, it is crucial to ensure maximum transparency, hold those responsible for negligence accountable, and revise the strategy for managing confiscated assets.