UK Court Supports Ukraine’s Nationalization of PrivatBank
The High Court in England and Wales has confirmed that Ukraine was justified in nationalizing PrivatBank from its previous owners, Ihor Kolomoisky and Hennadiy Boholiubov. This decision follows the revelation of substantial fraud amounting to $5.5 billion, as well as significant capital deficiencies.
This case has been unfolding for quite some time—specifically since the lawsuit was initiated in 2017. PrivatBank was nationalized in 2016 due to its regulated capital dropping to unfavorable levels, which raised serious concerns about its financial health.
Despite multiple requests, the former owners did not contribute additional capital to stabilize the bank. Since its nationalization, PrivatBank has emerged as Ukraine’s largest financial institution in terms of client base, serving over 19 million customers, alongside being profitable.
In addition to Kolomoisky and Boholiubov, a company involved, associated with three English and three British Virgin Islands (BVI) entities, admitted to facilitating bogus loans.
The High Court found that Kolomoisky and Boholiubov had misappropriated $1.9 billion through a sophisticated scheme designed for their own financial gain. PrivatBank initiated legal proceedings in 2017, and hearings extended from June to November 2023, concluding with a final judgment on July 30, 2025.
PrivatBank hailed this ruling as a significant victory. This case stands as one of the most prominent among those involving Kolomoisky and Boholiubov, who had ownership stakes in the bank.
The court determined that the defendants were deeply involved in the fraudulent loan agreements that siphoned funds from the bank, with 134 fake loans resulting in losses of $2.3 billion. The court mandated that this sum, along with outstanding amounts of $1.9 billion, be repaid to the state-run PrivatBank. If they fail to comply, PrivatBank can seize international assets to recover the debt.
The total recompense might actually be higher, pending a reassessment based on market standards, with an exact figure expected by October, including interest and legal fees incurred during the case.
This is reportedly one of the largest civil fraud lawsuits ever to be examined in a UK court, with potential compensation figures marking a significant legal precedent. Interestingly, Kolomoisky and Boholiubov have denied any involvement in the fraud, asserting that the loans were settled and the bank’s debt cancelled. However, the High Court held them accountable for their roles in the fraudulent actions.
Judge William Trauer remarked that Kolomoisky perceives himself as above the law, which poses risks to senior officials at Ukraine’s National Bank (NBU). He also criticized Boholiubov for lacking transparency with auditors and regulators.
Evidence showed that both defendants actively worked to destroy records related to the case. This ruling represents a significant shift in the dynamics of the Ukrainian banking sector, particularly in curbing oligarchs’ immunity.
Andriy Pyshny, the NBU governor, welcomed the ruling. He noted that the court established the former owners exploited fraudulent practices to extract funds.
After the fraudulent dealings were uncovered, Ukraine had to inject 15.5 billion UAH into the bank using taxpayer money. This financial support was eventually reimbursed to the state, but it took seven years following the nationalization to fully recover those losses.
Maintaining the stability of the banking system is critical, especially as PrivatBank is deemed a systematically important bank in Ukraine. Pyshny emphasized the importance of justice in this matter, stating that fraudulent business models lack sustainability and will be countered through legal means.
Oksana Markarova, the current U.S. ambassador and former Minister of Finance, expressed her support for the ruling. Reflecting on the long journey of this legal battle, she highlighted the extensive efforts and pressures endured in pursuit of accountability regarding the public’s interests.
