Ukraine ruling confiscating USD 1.5 bln from Yanukovych takes effect

3 May 2017

A previous court ruling confiscating USD 1.5 bln from former Ukrainian President Viktor Yanukovych and his close aides took effect on April 28, the press service of the National Security and Defense Council reported that day. The funds, which had been deposited into state bank Oschadbank, have been wired to the state budget and will be used for the needs of the army and social needs, the statement said. The 2017 state budget planned UAH 11.6 bln (USD 0.4 bln) in revenue from the confiscation of assets and funds gained by corruption.

 

Alexander Paraschiy: This move is a small step towards restoring justice for the crimes committed by the Yanukovych administration, but few Ukrainians care any more. With all the military and economic devastation since the EuroMaidan, the Yanukovych administration is a mere afterthought. Ukrainians are most concerned about economic relief and reforms, which have been lacking from the Poroshenko administration.

 

Meanwhile, the conditions surrounding the USD 1.5 bln confiscation raise certain questions. This sum could not have been available in U.S. dollars since Ukrainian banks are only allowed to hold foreign currency within limits and it’s very unlikely Oshchadbank kept USD 1.5 bln frozen for the last three years. So these are liabilities rather than assets. Secondly, some media disseminated information that an amount equivalent to USD 1.5 bln was deposited in state securities denominated in the national currency. If this information is true, it means that this confiscation technically is just the return of state bonds into state ownership. So any economic effects will be minimal.