Court confiscates Ukrainian oligarch Kolomoisky's Russian assets

Court confiscates Ukrainian oligarch Kolomoisky's Russian assets
A Russian court has confiscated the Russian assets tied to jailed Ukrainian oligarch Ihor Kolomoisky, who remains in pre-trial detention in Ukraine. / bne IntelliNews
By bne IntelliNews March 8, 2024

The Russian District Court of the Adygea Republic has confiscated the Russian assets tied to jailed Ukrainian oligarch Ihor Kolomoisky, on March 5, according to the Russian judiciary's press service.

The court ruled that Kolomoisky was a stakeholder in the UK-registered oil and gas company JKX Oil & Gas Limited that operates in both Russia and Ukraine.

The Russian authorities denounced the firm as an "extremist faction" purportedly engaged in antagonistic activities towards the Russian state.

One of Ukraine’s few productive independent oil and gas companies, the firm has been trying to distance itself from the controversial oligarch, who was arrested by the Security Service of Ukraine (SBU) last autumn on fraud charges and remains in pre-trial remand. JKX Oil & Gas announced in November that Kolomoisky had relinquished all forms of ownership and involvement with the company.

The seized assets in Russia include shares of Yuzhgazenergi and Catering-Yug, collectively valued at over RUB5.1bn ($55mn). In addition a building along with six units in Moscow, and around 500 parcels of land scattered across four Russian regions, collectively worth in excess of RUB6bn ($66mn) were seized.

The court alleged Kolomoisky endorsed the Ukrainian leadership established post the 2014 Revolution of Dignity and provided monetary aid to the Ukrainian military forces, amongst other charges.

Formerly a mentor and business partner of Ukrainian President Volodymyr Zelenskiy, Kolomoisky was arrested in Kyiv on September 2, 2023, on charges of fraud and money laundering linked to his ventures in the oil and gas sector. Initially, his bail was fixed at UAH509mn ($13.2mn), which he refused to pay. Later he was charged with embezzling funds from Privatbank that he founded but was later nationalised in 2016 after a $5.5bn hole was found in its balance sheet.

On February 28, the Shevchenkivskyi District Court in Ukraine prolonged Kolomoisky's detention by an additional two months while reducing his bail to UAH2.4bn ($62.5mn).

The 61-year-old tycoon claims he is suffering from health problems, but his request to be released to house arrest has been rejected in November.