PrivatBank Sues Billionaire Kolomoisky In U.S. Court

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A major Ukrainian bank has sued its former oligarch owners in U.S. court, amid a battle for control that could affect relations with Western lending institutions, writes

PrivatBank, which was nationalized by Ukraine three years ago, filed the lawsuit on May 21 in Delaware state court against Ihor Kolomoisky and Hennadiy Boholyubov.

Kolomoisky, who had been living in self-imposed exile for almost two years, returned to Ukraine following Zelensky’s election as a president of Ukraine on April 21. Zelensky is linked to Kolomoisky through the oligarch’s ownership of the TV station that hosted a comedy program in which Zelensky starred. Zelensky has also appointed a lawyer for Kolomoisky to be his chief of staff.

The lawsuit comes as Kolomoisky seeks to regain control of the bank he helped found in 1992. The National Bank of Ukraine nationalized it in 2016 under then-President Petro Poroshenko and regulators later injected roughly $6 billion of Ukrainian taxpayer money to prevent its collapse.

According to Moody’s, Ukraine’s credit profile could be badly damaged because of the PrivatBank.

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