Ukrainian billionaire Firtash arrested at request of U.S. FBI

Ukrainian billionaire Dmytro Firtash was arrested on March 13 in Austria at the request of the U.S. Federal Bureau of Investigations (FBI), the Interfax-Ukrayina news agency confirmed, citing an anonymous source with his holding company, Group DF. “The reason for the arrest was an FBI investigation into an investment project in India in 2006 in which Firtash allegedly participated,” the source said, who denied Firtash’s guilt in the charges presented to him. Several Indian nationals are under arrest in the U.S., one of which allegedly testified to Firtash’s involvement in the alleged crime, the source said.

Firtash is most known for his key role in Ukraine’s natural gas trade, from which is believed to earned hundreds of millions of dollars in profit. He acquired an enormous amount of assets under the rule of former President Viktor Yanukovych, particularly in the local gas distribution and ammonium production sectors. Group DF reported USD 6 bln in revenue and USD 1.3 bln in EBITDA in 2012, Interfax reported.

Zenon Zawada: In the political context, Firtash’s arrest is most critical in that it enables the new Ukrainian government – which will work together with Western governments – to collect criminal evidence against the highest officials in the administration of former President Viktor Yanukovych and pursue criminal charges against them. Firtash had cozy relations with officials in the Yanukovych administration, to put it mildly. In exchange for such valuable information, we share the widely held view that Firtash’s punishment in relations to his alleged criminal activity will be reduced.

Should he avoid a criminal conviction that implies a long prison sentence, Firtash could end up being able to keep most of his assets in Ukraine. Yet his testimony could also throw open the doors to criminal charges brought against him by the new Ukrainian government. A leading presidential contender, former Prime Minister Yulia Tymoshenko, is a sworn enemy of Firtash for his role in her imprisonment and could seek to put him out of business in Ukraine.