London court rules in favor of PrivatBank against Kolomoiskyi and Boholiubov

The High Court of England and Wales has ruled in favor of PrivatBank in its case against former owners Ihor Kolomoiskyi and Hennadii Boholiubov, according to a statement on the bank’s website.

"We’ve done it! A full and unequivocal victory for PrivatBank in the High Court of England," wrote Artem Shevalev, a member of PrivatBank’s Supervisory Board, on Facebook.

PrivatBank was nationalized on December 21, 2016, due to insolvency. The Ukrainian government acquired a 100% stake in the bank and immediately recapitalized it with UAH 116.8 billion. In June 2017, based on recommendations from the National Bank of Ukraine (NBU) and the opinion of independent auditor EY, the Cabinet of Ministers approved an additional capital injection of UAH 38.5 billion.

Following the nationalization, Kolomoiskyi and Boholiubov began challenging the state takeover and related claims in Ukrainian courts. In response, state-owned PrivatBank filed a lawsuit in the High Court of London seeking compensation for damages.

The case centers on an alleged fraudulent loan scheme through which, according to PrivatBank, $1.9 billion was siphoned off via fictitious loan transactions involving dozens of Ukrainian and international companies. Among them were three UK-registered entities and three companies registered in the British Virgin Islands (BVI), all allegedly controlled by Kolomoiskyi and Boholiubov.

The case entered its active phase in December 2017, when the High Court issued a Worldwide Freezing Order (WFO) on the assets of Kolomoiskyi and Boholiubov, covering up to $2.6 billion globally as security for the bank's claim.

In 2018, the High Court initially ruled that it lacked jurisdiction to hear the case. However, in 2019, the Court of Appeal overturned that decision, allowing the case to proceed and upholding the WFO.

Ultimately, Judge William Trower ruled in favor of PrivatBank, holding Kolomoiskyi and Boholiubov jointly and severally liable for approximately $1.9 billion, subject to deductions for any sums the bank may have already recovered.