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16 I Companies & Markets bne August 2023
leading to travel restrictions and accusations of large-scale corruption.
The war with Russia further complicated Kolomoisky's situation. Initially he believed the Russian occupation of Ukraine was inevitable and sought refuge in the Menorah Jewish cultural centre in Dnipro. However, he eventually evacuated to the West, and his psychological state fluctuated between periods of depression with drinking and dreams of regaining political influence. By the summer of 2022, he portrayed himself as a retired oligarch, hoping for a return to politics after the war.
During this time, his oil businesses faced significant setbacks. Ukrnafta and Ukrtatnafta were placed under state control, and there were allegations that fuel was being withheld
from the Ukrainian Armed Forces. Kolomoisky's attempts
to initiate lawsuits were halted after the warning from the Office of the President. Furthermore, the seizure of shares in Ukrnaftoburinnya added to the blows against his oil business.
Kolomoisky's political activities now revolve around fine- tuning the news broadcasting of the 1+1 channel and attempting to revive the influence of Oleksandr Dubinsky as an opposition political blogger and MP. However, his political group is no longer as cohesive as before, and its actions
have become predictable to the administration. Dubinsky's influence has been curtailed since he was sanctioned by the United States, but he still maintains some recognition through social media platforms.
In terms of business, Kolomoisky's main sources of income have been severely restricted. He retains control over JKX
Oil & Gas, gas stations, an oil terminal and idle refineries. However, his ferrous alloy business, located near the front line, faces uncertainties due to recent sanctions. The Bukovel resort, once officially owned by Kolomoisky and Boholyubov, now operates under different ownership, with the Palytsia family controlling the rights and profits.
The ongoing legal battle in London over Privatbank's fraud claim against Kolomoisky and Boholyubov further threatens their wealth. The court has seized all their known assets, and a loss in the case could require them to compensate
the bank's losses to the tune of $4bn. The outcome of the trial, due this year or next, remains uncertain, but even in defeat, Kolomoisky and Boholyubov would still be wealthy individuals seeking an understanding with the authorities.
Despite the challenges, Kolomoisky still maintains contacts with the Office of the President through his close associate Timur Mindich. The authorities view him as a domesticated oligarch, someone who can be controlled to some extent to ensure progress and European integration. The changing dynamics of power in Ukraine, with increased influence held by the Office of the President and military administrations, mean that oligarchs like Kolomoisky and Boholyubov have limited space in the new Ukraine, but the intension seems to be to press them into service once the fighting ends.
The future relationship between the government, business, and civil society in Ukraine will determine the role and influence of oligarchs. While Kolomoisky continues to navigate through challenges and seek opportunities, the landscape has shifted, and his once-dominant position is no longer guaranteed.
Igor Kolomoisky
www.bne.eu