Appellate court cancels in absentia arrest of Zhevago
5 June 2020
The Kyiv Appellate Court ruled on May 25 to overturn the December ruling of a first-tier court
to arrest Kostyantin Zhevago, the key shareholder of Ferrexpo (FXPO LN) and
former owner of failed F&C Bank, Interfax-Ukraine reported on June 4,
citing Zhevago’s press service. The appellate court concluded that Zhevago was
not placed on international search by Interpol, meaning that the necessary
condition to arrest him in absentia has not been met, according to Ukrainian
legislation.
Recall, Zhevago was served in September with a notice of suspicion related to
the embezzlement of USD 113 mln from F&C Bank in 2015. In October, he was put on a wanted list
in Ukraine by the State Bureau of Investigations, whose head promised to take
measures to put Zhevago on international search. Zhevago has been abroad since
all these events started.
Alexander Paraschiy: Zhevago and
another failed banker Oleg Bakhmatyuk, the owner of agri-holdings
Ukrlandfarming (UKRLAN) and Avangardco (AVINPU, AVGR LI), were chosen as
primary targets for possible prosecution for failing their banks back in 2016,
but by mid-2019 Ukraine’s law enforcement bodies made no progress in their
cases. Some activation of investigations was demonstrated in fall 2019, resulting
in the serving of both businessmen with notices of suspicion and in absentia
arrest rulings. The latter rulings look unlawful, as
Zhevago was able to prove recently, so both businessmen gained more arguments
to allege political (or other type of ill-motivated) pressure, thereby lowering
their likelihood of being extradited and prosecuted in Ukraine.
In turn, we are observing a lack of intellectual
capital in law enforcement bodies in Ukraine, meaning there is low chance that
the two seemingly easy targets will be punished. This makes for a low chance
for Ukraine to get compensated any losses related to the failed banks,
including more complicated cases like Privatbank. Needless to say, this event
is positive for Zhevago, Bakhmatyuk and their assets.
