Ukraine's authorities try to make oligarch Kolomoisky plug the leaks of PrivatBank

Author : Yaroslav Konoshchuk

Kolomoisky still intends to postpone this issue until 2019, throwing a spanner in the works of President Poroshenko

12:17, 12 October 2017

Read the original text at 112.ua.

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The struggle for the assets of Ukraine’s businessman Igor Kolomoisky and the return of loans to PrivatBank came to the next round. Deputy Chairman of the Board of the National Bank Kateryna Rozhkova said that the nationalized PrivatBank should sell non-core assets: the ski resort Bukovel (Ivano-Frankivsk region), the 1 + 1 TV channel in Kyiv, and the Ukrainian International Airlines (UIA). The negotiations with former shareholders of PrivatBank on the restructuring of loans have lasted for months, but without visible results. Our sources, close to the President Poroshenko and oligarch Igor Kolomoisky, do not believe that blackmail of the loss of assets will force the former head of the Dnipropetrovsk regional state administration to pay bills.

Recall that, in accordance with the agreements between former shareholders of PrivatBank Igor Kolomoysky and Hennady Bogolyubov and the Cabinet of Ministers, the first undertook obligations to restructure debts in excess of 4 billion USD for loans, which are considered insider credits by the Ministry of Finance. However, by that time, the relevant obligations were not met, and the National Bank announced enforcement of debts.

Related: Case on embezzling PrivatBank funds: office, plant, and plane arrested by court

July 3, Prosecutor General Yuriy Lutsenko announced the arrest of "more than 700 properties." Among other things, the grain terminal "Boryvazh" was under arrest. However, in parallel negotiations with former PrivatBank owners regarding debts on insider loans continued. And in summer, then the chairman of the board of the financial institution, Olexander Shlapak, said he hoped for peaceful negotiations between the consortium of companies (which includes Rothschild) and the ex-shareholders of the largest financial institution in Ukraine.

Yes, Kolomoisky himself then said that, in accordance with the undertaken obligations, he takes part in negotiations regarding debts.

Related: Privatbank ex-owners fail to fulfill commitments in time, - National Bank

However, according to our sources close to President Poroshenko, the negotiations are unsuccessful.

People close to Kolomoisky say that the party does not refuse from negotiations, but considers that the amount, demanded by the authorities, is too large.

"If the government continues to go ahead, in the end it will not get nothing," said one of the deputies close to the ex-head of the Dnipropetrovsk regional state administration.

Related: PrivatBank lawsuit may cause significant losses to the state

In the meantime, the efforts of the consortium of companies that represented the interest of the National Bank and the Ministry of Finance could not move the solution of the PrivatBank question from the dead point. The authorities have just designated a force option for resolving the issue. However, this is only a warning about possible consequences, if Kolomoisky's position remains unchanged.

"Our international partners insist on resolving the issue of insider loans of PrivatBank. They use to remind Poroshenko about it, and therefore, the authorities cannot do anything on this issue at all, while Kolomoisky gradually loses control over the assets," deputies from the opposition factions explained, recalling the arrest of the property of the Ordzhonikidze Ore Mining and Processing Enterprise, Nikopol Ferroalloys Plant, Manganese Mining and Processing Plant, and Dniproazot, which are under Igor Kolomoisky and Hennady Bogolyubov. In early October, the public became aware that law enforcement officers suspect PrivatBank group of fraud.

Related: Talks with Privatbank ex-owners continue

Solution of the problematic issues of PrivatBank was one of the conditions for allocating am IMF tranche to Ukraine. The current prime minister, head of state, and head of the National Bank then agreed, and the tranche has already been transferred to the accounts of the National Bank of Ukraine.

Prospects for repayment of debts on loans, which were issued by the largest bank in our country, still look vague. The authorities want to repay debts on PrivatBank loans at the expense of Kolomoisky's property, which is pledged for earlier loans, but there is no guarantee that the court would not lift the arrest from the property of the oligarch.

"Kolomoisky still intends to postpone this issue until 2019, throwing a spanner in the works of Poroshenko, for example, during the consideration of presidential bills concerning Donbas status in the parliament...", our in the presidential administration note. In 2019 presidential and parliamentary elections will take place, and Kolomoisky's main hopes are connected with a possible change of power in the country.

Related: Schemes of withdrawing money from PrivatBank before its nationalization