Ukreximbank CEO detained for alleged money laundering

Oleksandr Hrytsenko, the CEO of Ukraine State
Export-Import Bank (Ukreximbank, EXIMUK), was detained at the request of the
Prosecutor General’s Office on Nov. 16, local media reported, citing a State
Security Service of Ukraine (SBU) statement the same day. He has been named a
suspect in the crimes of creating a criminal organization, misappropriating the
property and legalizing the illicit incomes of top officials of the Yanukovych
era, the SBU reported. In particular, Hrytsenko abused his authority by
withdrawing from arrest the property of a media holding, the SBU clarified. The
Prosecutor General’s Office did not comment on the case.

Hrytsenko’s detention might be related to a case
involving UMH Group, a media holding that was purchased by a group led by
Sergiy Kurchenko in 2013, according to nv.ua news site. The group allegedly
paid for the holding USD 246 mln of its own funds (which law enforcement bodies
suspect were received illegally) and USD 160 mln raised as a loan from
Ukreximbank in October 2013. Hrytsenko, appointed as Ukreximbank CEO in
September 2014, was active in recovering the loan, nv.ua reported, citing
Hrytsenko’s lawyer. The lawyer highlighted that Hrytsenko “collected funds and
property in favor of the state bank and on the basis of court rulings,” thus
having done nothing illegal but instead having protected the bank’s interests.

Commenting on the recent detention of bankers, former
central bank governor Valeria Gontareva told nv.ua that the present-day
“Bankers’ Plot” resembles the “Doctors’ Plot” fabrication hatched in the Stalin
era, alleging the allegations were groundless.

Alexander Paraschiy: This is the second detention of a top banker in the last week after the case of Alexander Pisaruk, CEO of Raiffeisen Bank Aval and former deputy
governor of the central bank. This adds little to Ukraine’s investment case,
though we do not expect any effect from the detention on Ukreximbank’s
performance. Most likely, the bank’s CEO will be released on bail soon, as was
the case with Pisaruk, who was released on UAH 5 mln bail posted by Raiffeisen
Bank Aval.