SBU asks Privatbank to coordinate legal claims against Kolomoisky

The Security Service of Ukraine (the SBU) filed a letter
on Dec. 17 to the supervisory board of Privatbank asking the bank to avoid
filing court claims against its former shareholders in international courts
without the permission of law enforcement bodies, the radiosvoboda.org news
site reported on Dec. 20. Namely, the SBU “considers as necessary” for the bank
to get approval on such legal initiatives from the SBU and the Prosecutor
General’s office. The SBU attributed this necessity to the possible negative
effect of such claims on criminal investigations in Ukraine of former banking
insiders.

Recall, Privatbank was recognized insolvent in
December 2016, after which it was nationalized. Ukraine’s central bank, MinFin
and Privatbank are suing its former shareholders, Igor Kolomoisky and Gennadiy
Bogolyubov, in various international jurisdictions, including the U.K., the
U.S. and Switzerland. On Dec. 19, the bank reported that it initiated a court
claim against the bank’s former owners in Israel.

Alexander Paraschiy: The SBU’s
explanation on why the bank is advised to coordinate legal battles with the
service looks like groundless pressure to avoid new legal claims against
Kolomoisky. It’s also worth noting that the SBU is currently headed by Ivan
Bakanov, an old friend and business partner of President Zelensky. Bakanov had
been the director of the Kvartal 95 entertainment company, which was co-founded
by Zelensky and is broadcasting its shows on the television channels of
Kolomoisky.

So far, it looks like Privatbank’s board, which
consists mostly of independent members appointed under the Poroshenko
administration, is able to behave independently and ignore such strange
recommendations of the SBU. In any case, such pressure on Privatbank does not
look positive for Ukraine’s investment case and its outlook for an IMF deal,
which demands that Privatbank and the government intensify their efforts to
claim compensation from the bank’s former owners.