Thread on @NBUkraine & @PrivatBankua: Largest 🇺🇦 bank, will face former owner, the oligarch Ihor Kolomoisky, in #Ukraine appeal court tomorrow to try and reverse controversial ruling that 2016 nationalization was illegal. Kolomoisky either wants bank returned, or compensation.
Let's recap what we know and why it matters: Bank was nationalized with a $5.5 billion gap in its books. It was a Ponzi-like pyramid scheme of related party lending... corporate loan portfolio was 100% NPLs, according to NBU, MinFin and auditors. IMF supported a state takeover.
“The bigger picture (in 2016) was even more concerning, with some 20% of banks… used only for money laundering…” says former NBU Governor, Valeria Gontareva. She closed 89 insolvent and shady banks. Total $15 billion in state recapitalizations bc of dodgy NPLs in this period.
PrivatBank has now turned itself around to become the most profitable bank in Ukraine. It accounts for 60% of banking sector profit, and 90% of that profit is paid back to the state as dividends, making it third-largest taxpayer. kyivpost.com/business/priva…
Kolomoisky meanwhile faces trial in London where UK courts have ruled they have jurisdiction to settle a $3bn embezzlement suit. $1.72bn of that was directly laundered through London, PrivatBank alleges. How did the alleged scheme work? Read this: kyivpost.com/business/inves…
And as @WendySiegelman reminds us today, Kolomoisky is also facing huge civil claims in the US and a reported FBI investigation over alleged money laundering on a massive scale. He also appears to have quite extensive links to the #Trump #Russia story.
Will Kolomoisky get PrivatBank back? The government insists it will not allow that. Senior Cabinet source told me Gov is committed to 1) no return of bank, 2) no refunds, 3) going after alleged stolen $5.5bn. I think we are about to test that commitment. kyivpost.com/business/ukrai…
Public & media once again barred from proceedings in Kyiv between #PrivatBank, NBU etc & Kolomoiskiy, reports @AnnaMyroniuk outside court. Banking secrecy cited. We think it’s in the public interest for @KyivPost to be in the courtroom, like we have been in London cases. #Ukraine 
