Ukraine issues suspicion notice to Russian oligarch in connection with UAH 100 mln laundering

This was reported by the Bureau of Economic Security (BES).

"BES detectives have served a notice of suspicion to a citizen of the Russian Federation and Israel, a well-known Russian businessman, and former owner of a Ukrainian bank. He is suspected of laundering about UAH 100 million and intentional tax evasion in the amount of UAH 18 million by officials of a joint-stock company - a bank committed by an organized group," the statement said.

In particular, in early June, 738 real estate objects owned by the bank were arrested. It is also added that the Russian businessman was the owner of an indirect share of the Ukrainian bank. He owned more than 30% of its authorized capital through a Cyprus offshore company.

The Ukrainian bank, its parent bank in the Russian Federation and the offshore company are linked by the sole beneficial owners, including the aforementioned Russian businessman.

"He and his Russian partners, on the eve and during the armed aggression of the Russian Federation against Ukraine, carried out fictitious transactions and financial transactions to legalize the assets of the mentioned companies totaling more than UAH 1 billion and their further withdrawal from the banking system in Ukraine," the BES explains.

It is emphasized that the oligarch wanted to avoid possible sanctions or the use of measures of forced seizure of property rights.

At the end of July 2023, the bank was nationalized. The oligarch is currently under sanctions in the EU, the US, and Ukraine.

The pre-trial investigation is ongoing, and a list of all the businessman's property, both in Ukraine and in foreign jurisdictions, is being compiled.

Law enforcement officials have not disclosed the name of the Russian businessman, but judging by the photo posted by the BES, it can be assumed that it is Mikhail Fridman, the former owner of Sense Bank (formerly Alfa Bank), which was nationalized in July this year.

Photo: Bureau of Economic Security of Ukraine

Background

Sense Bank is a state-owned bank, one of the systemically important banks in Ukraine with 132 branches throughout Ukraine. The financial institution serves about 3 million individuals, 58,000 legal entities and 86,000 individual entrepreneurs. The bank employs about 4,000 people.

On July 20, President Zelenskyy instructed the Cabinet of Ministers to immediately deal with Sense Bank, owned by sanctioned Russian citizens Mikhail Fridman, Pyotr Aven, and Andrey Kosogov.

On July 21, the Cabinet of Ministers decided to purchase all of Sens Bank's shares from the Deposit Guarantee Fund for 1 hryvnia. Thus, the bank, owned by sanctioned Russian citizens Mikhail Fridman, Pyotr Aven, and Andrey Kosogov, became state-owned.

On July 22, 2023, the Ministry of Finance of Ukraine and the Deposit Guarantee Fund signed a contract for the sale and purchase of 100% of Sense Bank's shares, under which the bank became state-owned.

Later, on July 24, the Prosecutor General's Office reported that law enforcement officers had prevented the transfer of billions of dollars in assets of a Ukrainian bank owned until recently by a Russian oligarch. 

In addition, on August 11, the United States reported it had imposed sanctions against four Russian oligarchs, including Alfa-Bank co-owners Mikhail Fridman and Pyotr Aven.