Ukraine's PrivatBank wins UK lawsuit against former owners over alleged fraud

LONDON (Reuters) -Ukraine's PrivatBank on Wednesday won its London lawsuit against its former owners for allegedly siphoning off nearly $2 billion from the country's largest lender.

PrivatBank accused Ihor Kolomoisky – a once-powerful businessman and supporter of President Volodymyr Zelenskiy's 2019 election run – and Gennadiy Bogolyubov of orchestrating sham loans and supply agreements between 2013 and 2014.

The lender has pursued Kolomoisky and Bogolyubov in the English courts since 2017, the year after it was nationalised as part of a clean-up of Ukraine's finance system.

Kolomoisky, who has been detained since September 2023 on suspicion of fraud and money laundering, and Bogolyubov – whom Ukrainian investigators this month said illegally left the country – both denied any wrongdoing.

Their lawyers said at a trial starting in June 2023 that there was no misappropriation from PrivatBank, which they argue had no evidence they had any knowledge of, or involvement in, the alleged fraud.

The case was closely watched by politicians and investors as a test of Zelenskiy's willingness to pursue reforms and tackle the corruption which has blighted Ukraine for years, amid its ongoing war with Russia.

Judge William Trowler ruled in favour of PrivatBank, saying Kolomoisky and Bogolyubov were "jointly and severally liable" for around $1.9 billion, less any sums which may have previously been received by the bank.

(Reporting by Sam Tobin; editing by Sarah Young)