Insider Business PrivatBank is suing companies in Cyprus

PrivatBank is suing companies in Cyprus

State-controlled Ukranian PrivatBank has recently issued a new claim in a Cypriot court seeking damages of US$5.5 for alleged money laundering, according to Interfax.

The Bank alleges that the illegal actions were perpetrated by former owners Igor Kolomoisky and Gennadiy Bogolyubov, one of its former senior executives, Timur Novikov, and two Cypriot companies – PrimeCap (Cyprus) Limited and Duxton Holdings Limited.

The new claim was served in Cyprus on April 3, 2020, after the Cypriot court granted a document preservation order against PrimeCap. Service on the overseas defendants will follow in due course.

PrivatBank had physical presence in Cyprus with two branches in operation – one in Nicosia and another in Limassol – before taken over by the state.

The Bank’s claim relates to two sets of transactions that the Bank alleges were unlawfully implemented between 2013 and 2016 at the direction of its former owners with the assistance of the other defendants.

These involved vast sums being paid to companies owned and/or controlled by Kolomoisky and Bogolyubov pursuant to what the Bank alleges were sham loan agreements, none of which have been repaid.

Those transactions include a scheme by which US$2.34 billion was routed to a Cypriot company connected to the former shareholders of the Bank, Duxton Holdings Limited, in almost daily tranches of US$30 million over a four month period in 2013.

This claim brings the combined amount claimed by PrivatBank against Kolomoisky and Bogolyubov in England, Cyprus, the US and Israel to a total of over US$10 billion.

In a statement the Bank said it remains committed to obtaining full compensation from its former owners in respect of the damage caused to it whilst under their ownership and control.

By Evagoras Procopiou

Read more:

Landslide election victory thrusts Ukrainian comedian into limelight

 

Top Stories

France recalls ambassador to Ankara over Erdogan comments

  France condemned Turkish President Recep Tayyip Erdoğan’s remarks questioning the mental health of President Macron and recalled its ambassador to Ankara for consultations. The French...

130 cases today, most from private initiative-28 patients in hospital

  One hundred and thirty new Covid-19 cases were announced today, out of 4 thousand 285 tests, taking the total number of confirmed patients to...

Greece approaches four-digit covid cases, 935 today

  The second coronavirus wave is climaxing in Greece as it recorded 935 cases today, the highest number since the second wave begun gathering pace...

Erdogan says Macron needs ‘mental treatment’ over attitude to Muslims

  Turkish President Tayyip Erdogan launched yet another scathing tirade of insults on his French counterpart Emmanuel Macron, saying he needed mental treatment over his...

We are independent, Michaelides tells AG over golden passports

  We are not under anyone's custodianship, the Auditor General Odysseas Michaelides told Attorney General Yiorgos Savvides, who earlier called on his office to stay...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...