Ukraine's PrivatBank has secured a major legal victory in London after a judge ruled that its former owners must pay approximately $1.9bn for allegedly defrauding the country's largest bank, Reuters reported on July 30.

The ruling represents a significant test of President Volodymyr Zelenskiy's commitment to anti-corruption reforms as Ukraine continues its war against Russia, with politicians and investors closely monitoring the case's outcome.

The bank brought legal action against Ihor Kolomoisky, a prominent businessman who backed Zelenskiy's 2019 presidential campaign, and Gennadiy Bogolyubov, alleging they created fraudulent loan arrangements and fake supply contracts between 2013 and 2014.

PrivatBank initiated proceedings against both men in English courts during 2017, following the lender's nationalisation as part of Ukraine's financial sector reform programme.

Kolomoisky has remained in custody since September 2023 facing fraud and money laundering charges, whilst Bogolyubov allegedly fled Ukraine illegally earlier this month according to investigators, with both defendants maintaining their innocence.

Defence lawyers argued during proceedings that began in June 2023 that no funds were misappropriated from PrivatBank, claiming insufficient evidence existed to prove their clients' involvement in any fraudulent activity.

Judge William Trowler delivered his verdict in favour of PrivatBank, determining that Kolomoisky and Bogolyubov bear "joint and several liability" for approximately $1.9bn, minus any amounts previously recovered by the institution.