Kroll investigators have uncovered a ploy that reveals how Igor Kolomoiskiy, Igor and Grigory Surkis withdrew funds from Privatbank during the bank’s nationalization. This fact is noted in the information our editors obtained from the 2017 Kroll Report.
According to this information, in 2008-2010 a number of companies associated with Privatbank received loans from Privatbank Cyprus, for a total amount of USD 361 million.
“The loans, totaling $ 361 million, were grouped into batches, in which the loans were issued within minutes of each other before being immediately routed through a network of transactions between the accounts. related companies that appeared to have no obvious business purpose.
According to investigators, the same funds were then deposited at Privatbank. They were initially deposited for a period of up to two years at the time of the bail-in into the accounts of a number of companies which then redirected the funds to the deposit accounts of six companies: Sofinam Investments LLP, Lumil Investments LLP, Berlini Commercial LLP, Camerin Investments LLP, Sunnex Investments LLP and Tamplemon Investments LLP. They were all registered on the same day at the same address and came under the jurisdiction of the British Virgin Islands.
“These six account holders accounted for around 80% of the total bond deposits in Cyprus, for a total of US $ 245 million…. . . Interest received on deposits was significantly higher than interest due on loans ”- says the Kroll report. “The loans appear to be part of a much larger long-term program, in which loans issued by Privatbank Cyprus have been recycled and repaid by new loans issued under the guise of legitimate business loans. While the loans that were issued and funneled into depositors’ accounts have now been settled, the source of the funds that settled them has not yet been fully understood, as it involved multiple layers of loan recycling.
About $ 150 million, including loan funds and interest, was withdrawn from Privatbank through this program. According to the Kroll report, these funds were transferred to a number of accounts held at the Bank of Cyprus.
Kroll’s research has shown that the six deposit accounts mentioned in the report lead to Grigory and Igor Surkis. They are Ukrainian oligarchs and business partners of Igor Kolomoiskiy, one of Privatbank’s biggest shareholders before its nationalization. The Surkis brothers tried to prove in court that they were not associated with the former owners of Privatbank and insisted that the bail-in procedure was illegal.
Along with the legal proceedings in Ukraine, Igor Surkis filed a complaint with the High Court in London. The trial, unlike the Ukrainian procedure, declared the obvious connection between the Surkis brothers and Igor Kolomoisky.
On June 15, 2020, the Grand Chamber of the Supreme Court of Ukraine decided to close the case of the Surkis family against the National Bank of Ukraine: they did not dispute the fact of their connection to the former owner by Privatbank Igor Kolomoiskiy.
An independent Kroll investigation into the activities of Privatbank was carried out from 2016 to 2017. It found that Privatbank had been part of a large-scale coordinated fraud program for at least ten years before the bank’s nationalization, resulting in a bank loss of at least USD 5.5 billion. This information is indicated in the survey results which were presented by the National Bank of Ukraine in January 2018.