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tranche, news agency Interfax reported the same day.
A group of lawmakers from the ruling Servant of the People (SOTP) parliamentary faction, controlled by Ukrainian President Volodymyr Zelenskiy, have been accused of allegedly taking bribes in exchange for withdrawing their support for a bill that would have liquidated corrupt intermediary firms involved in the appraisal of real estate for the State Property Fund (SPF). On October 23, the Specialised Anti-Corruption Prosecutor’s Office (SAPO) opened a criminal case against 11 MPs from the parliamentary finance, tax and customs policy committee allegedly involved in this scheme. The penalty for such an offense is imprisonment from eight to 12 years and deprivation of the right to hold some public positions for three years.
In a case closely watched by the IMF and Western investors, a London appeals court gave the green light on October 15 to Ukraine’s government to sue Igor Kolomoisky and his main business partner for $3bn. Kolomoisky is appealing the decision of the Court of Appeal in London and Wales. But, lawyers say the U.K. Supreme Court rarely overturns decisions of the Appeals court. Without setting a trial date, the Appeals court told Kolomoisky and his business partner, Gennadiy Boholyubov, to prepare their defence by the end of next month.
Over the last six months, Ukrainian judges have ruled in favour of Kolomoisky, one of Ukraine’s richest men. A Kyiv Economic Court judge has repeatedly postponed a ruling the legality of the privatization and may be waiting for the end of the IMF annual meeting in Washington this week. On Friday, the Kyiv Post reported that two defence lawyers say the judge in Kyiv’s Economic Court, Liudmila Shkurdova, “is biased in favour of thebnaire oligarch.” In 2017, the IMF supported the injection of $5.5bn to save PrivatBank, the nation’s largest bank. Now, IMF makes clear that a return of the bank to Kolomoisky would kill prospects of IMF aid.
The new management of PrivatBank also is suing Kolomoisky and Boholyubov in Cyprus and in Delaware. "For the former owners, going to a foreign court is very risky,” Peter Krumhansl, a Czech who chairs PrivatBank’s board since 2018, tells NV Business. “A foreign court is usually independent and makes decisions in accordance with the law. This is likely to be a decision not in their favour. Therefore, they prefer to go to the Ukrainian courts, where more than 400 cases are pending today. On the contrary, we go to foreign jurisdictions.”
Zelenskiy responds to Steinmeier plan critics, assuring no Russia capitulation. The elections in occupied Donbas will occur only in accordance with Ukrainian legislation, which would require the involvement of Ukrainian parties and mass media, President Volodymyr Zelenskiy said in a video statement published on October 3 on the president.gov.ua website. The statement was aimed at responding to daily protests by nationalists, as well as moutning opposition to the Steinmeier formula raised by pro-Western intellectuals and politicians this week. The same day for instance, the Ivano- Frankivsk Regional Council issued a statement opposing the Steinmeier formula – for implementing the Minsk Accords to resolve the warfare in Donbas – that has been adopted by the president.
Kolomoisky business influence is growing, such as his recent taking control of electricity producer Centrenergo. Yet veteran journalist Serhiy Leshchenko reported early this month on Zelensky’s resistance to
13 UKRAINE Country Report November 2019 www.intellinews.com