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The fate of Ukraine wealthiest individuals unfolds in a tale of financial losses and legal repercussions 2024.

AzureJanuary 9, 2024

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The fate of Ukraine wealthiest individuals unfolds in a tale of financial losses and legal repercussions.

Ukraine wealthiest individuals & Ukrainian President Volodymyr Zelensky gained popularity in Britain for standing up to one of the world’s most influential leaders, Russian President Vladimir Putin. However, his readiness to confront figures like Putin shouldn’t be surprising. Zelensky’s rise to power has been marked by his challenges to the super-rich in Ukraine.

Before Zelensky’s emergence, oligarchs—businessmen with immense wealth—held sway over Ukrainian politics and exerted significant influence on the economy. Similar to Russia, many of these individuals, starting from modest backgrounds, amassed vast fortunes rapidly by acquiring state assets at low prices during the privatization of the 1990s.

Zelensky’s approach underscores a departure from the era when oligarchs dominated, reflecting a commitment to reshaping the country’s political and economic landscape. His stand against powerful figures like Putin aligns with a broader narrative of challenging entrenched elites, signaling a shift towards a more inclusive and transparent governance model. As Ukraine charts this new course, it draws attention not only for its geopolitical significance but also for the internal reforms shaping its domestic landscape.

These men, from owning media organizations to heading political parties, consolidated their influence by having a stake in various ventures. As Timothy Ash, a strategist at Bluebay Asset Management, highlighted to the BBC: “Nowhere in Emerging Europe, where countries have embraced Westernization, do oligarchs wield as much control as in Ukraine. While a few exist elsewhere, their dominance over the economy is not as absolute as it is in Ukraine

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Table of Contents

Businesses Face Hardship Due to Russia – Rinat Akhmetov Ukraine wealthiest individuals

The impact of Russian actions on businesses, as described by Rinat Akhmetov

Rinat Akhmetov, Ukraine’s wealthiest individual, is arguably the most visibly impacted oligarch since Russian tanks entered Ukrainian territory. With a vast empire encompassing energy plants and steelworks, it was inevitable that his assets would be in the line of fire. The financial toll on the billionaire has been staggering. As Russia targeted and destroyed his mining, steel, and energy facilities, an estimated $10 billion was wiped from his fortune. Tragically, the conflict has also resulted in the loss of 517 employees’ lives, with another 1,000 sustaining injuries.

In a rare interview with Forbes, Akhmetov candidly discussed the profound impact of the conflict on his business conglomerate known as SCM. “The state of SCM companies mirrors the state of Ukraine’s economy. It is dire,” he shared with the renowned American publication. “Metinvest, part of our steel company, has seen severe damage to assets or temporary occupation. DTEK, our energy holding, faces continuous shelling and attacks from Russian drones. Currently, Metinvest operates at only 30 percent to 50 percent of its capacity due to ongoing shelling and the occupation of the Black Sea area, including the ports.”

Despite having the financial means to leave, Akhmetov emphasized his commitment to his homeland. “I am staying in Ukraine, just like many other Ukrainian people. I have not left Ukraine for a day. I share the same feelings as all Ukrainians. Every waking moment is dedicated to the victory of Ukraine,” he asserted to Forbes. In 2022, Akhmetov took legal action against Russia in the European Court of Human Rights, seeking compensation for business losses incurred since the invasion

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Observing the Conflict from Incarceration – Ihor Kolomoisky

Ihor Kolomoisky finds himself witnessing the war from a prison cell. The ongoing conflict has put him behind bars, offering a unique perspective on the unfolding events.

Ihor Kolomoyskyy stands out due to his unusual association with Zelensky, often regarded as an ‘ally’ despite being an oligarch supporting the anti-oligarch candidate. This connection stemmed, in part, from the fact that the Ukrainian President’s “Servant of the People” show was aired on Kolomoyskyy’s TV network. However, since entering the political arena, Zelensky has faced and refuted allegations of ties to the billionaire. It’s worth noting that Kolomoyskyy was already facing challenges before the conflict with Russia unfolded.

The billionaire, who amassed his wealth by co-founding PrivatBank with Henadiy Bogolyubov in the early 1990s, faced setbacks such as having his assets frozen by Britain’s High Court in 2017. Subsequently, his bank was nationalized following an investigation accusing him and Bogolyubov of a decade-long fraud—allegations they vehemently deny, attributing the case to political motives. In the past year, Kolomoyskyy’s situation worsened with his arrest on fraud charges. In court, dressed in a blue tracksuit top, the billionaire appeared visibly displeased with the unfolding circumstances. As he remains in custody, he has relinquished control of his 1+1 Media group, citing the impact of incarceration on his ability to manage the media business.

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‘Epic Fraud’ and a £95 Million Divorce Settlement – Gennadiy Bogolyubov

Gennadiy Bogolyubov’s narrative unfolds against the backdrop of an ‘epic fraud’ and a £95 million divorce settlement. His story is one that intertwines financial complexities and legal challenges.

Henadiy Bogolyubov, business partner to Kolomoyskyy, has faced a series of escalating challenges since the commencement of Russia’s offensive. Last year, the duo found themselves entangled in a lawsuit in London’s High Court, filed by the bank they once owned. Presenting the case against Privatbank, Andrew Hunter KC made robust assertions, stating,\

“This case concerns fraud on an epic scale, covered up by money laundering on a vast scale perpetrated against the bank in 2013-14 by its former owners, Ihor Kolomoisky and Gennadiy Bogolyubov.” This fraudulent activity contributed to the bank’s collapse in 2016 and its subsequent nationalization in December of the same year. An ensuing investigation, led by the bank’s new ownership and management, unveiled the extent of the malfeasance.

Preceding the court hearing, Bogolyubov garnered attention for a high-profile divorce settlement. The oligarch sought to allocate a substantial sum of “a minimum of £95 million” to his wife as part of the separation agreement. However, judges rejected the arrangement, citing the impending case with the bank, which could potentially hold them liable for substantial financial claims. Bogolyubov, known for his considerable wealth, has made significant property acquisitions in London, including a £60 million family home on Belgrave Square and a £20 million house in Belgravia.

Accusations of Treason Against the ‘Chocolate King’ – Petro Poroshenko

Petro Poroshenko, often referred to as the ‘Chocolate King,’ is facing serious allegations of treason. The former Ukrainian president’s reputation has come under scrutiny, marking a significant turn of events.

During the 2019 election, Zelensky’s campaign gained momentum by addressing the issue of oligarch influence, particularly against his opponent, Petro Poroshenko, who himself is an oligarch. Poroshenko’s one-term presidency concluded with a substantial electoral defeat, marking the end of his leadership. Unlike other oligarchs with fortunes rooted in power stations or banking institutions, Poroshenko’s wealth comes from the sale of chocolates, caramel, wafers, cakes, and confectionery in 35 countries.

Widely known as the ‘Chocolate King,’ he faced travel restrictions last month, claiming his intent was to negotiate the end of a truckers’ blockade in Poland and seek support for Ukraine’s war effort in the US. However, Ukrainian security services alleged that his planned meetings included Hungary’s Prime Minister Viktor Orban, known for his ties to Russia’s leader Vladimir Putin.