trending Market Intelligence /marketintelligence/en/news-insights/trending/k-dVzyPN-nwGzgrMo23Bqw2 content esgSubNav
In This List

Ukrainian president pledges not to reverse Privatbank nationalization, EBRD says

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Ukrainian president pledges not to reverse Privatbank nationalization, EBRD says

Ukrainian President Volodymyr Zelensky has assured the European Bank for Reconstruction and Development that the nationalization of JSC CB Privatbank will not be reversed, Reuters reported Sept. 19, citing EBRD Vice President Alain Pilloux.

Privatbank was nationalized in 2016 with the support of the EBRD and the IMF after its shareholders, including Ukrainian businessman Ihor Kolomoisky, failed to recapitalize it. Ukrainian authorities have claimed that under Kolomoisky's ownership Privatbank was involved in fraudulent schemes that resulted in losses of at least $5.5 billion for the lender.

Ruling in a dispute between Kolomoisky and Ukrainian authorities, the Kiev District Administrative Court in April declared the nationalization of Privatbank as unlawful, with the central bank appealing the decision.

Following a Sept. 17 meeting with President Zelensky, Pilloux said he expected Ukrainian authorities would track the money reportedly stolen from Privatbank and that the lender would not be handed back to its previous shareholders.

"What I am telling you now, this is exactly what I heard from President Zelensky when I met him," Reuters cited the EBRD official as saying. "I have no reason to doubt his determination to do so. At the same time, we are vigilant and we judge on deeds."

The comments come after the Financial Times cited Ukrainian Prime Minister Oleksiy Honcharuk as saying that Zelensky, who has business ties to Kolomoisky, wanted to reach a settlement with the businessman over Privatbank's nationalization.