“Privatbank” of the Dnepropetrovsk governor Igor Kolomoisky, apparently, wants to cover all its losses at public expense. At first glance, the bank seems to be one of the largest and most stable in Ukraine, with a huge number of branches and millions of customers (40.6% of all depositors in Ukraine keep their deposits there). However, judging by the analytical note of the head of the NBU Valeria Gontareva, which appeared in the media, Privatbank is actually bankrupt.
As you know, Privatbank was included in the refinancing program as part of support for the domestic banking sector. Many experts and observers immediately noticed that Kolomoisky’s bank and several others close to the then head of the NBU Stepan Kubiv received the lion’s share of funding. (And, not for the first time, in 2009 Privat was also allocated more than UAH 7 billion in refinancing). To date, the refinancing amount is 1.1 billion US dollars. At the same time, the bank, or rather its owner Igor Kolomoisky, as has been repeatedly written in the media, was involved in the spring collapse of the hryvnia, when within a few days the hryvnia fell to a historic low against the dollar: 12 to 1. It turned out that the banks that received money for refinancing , used them for self-enrichment. This money entered the foreign exchange market, collapsing the national currency, and brought huge profits to its owners.
In addition, as Gontareva herself mentioned, there are questions regarding the property left by banks as collateral for refinancing. Kolomoisky managed to fool everyone here too. His bank left property in Crimea as collateral of 10 billion hryvnia. It was in April, and even then it was clear that, most likely, all property located in Crimea was lost. The Dnepropetrovsk governor left air as collateral. A separate question is why the NBU, or rather its head Stepan Kubiv, accepted such property as collateral. There were certain agreements between Kubiv and Kolomoisky, not without benefit for their own pockets.
But that’s not all. Now Privatbank is trying to get another 10 billion hryvnia in refinancing. This is despite the fact that the bank has been criticized many times for delays in payments, refusal to pay interest on time and generally return deposits. Clients have repeatedly complained about fraud in charging penalties. In general, Privat is “famous” for its toughness in working with clients and is known for cheating business partners on more than one occasion. Quite recently, an unpleasant story for Kolomoisky surfaced. It turns out that Privatbank imposed heavy fines on clients living in the ATO zone. Moreover, no persuasion had any effect on the bank employees. They categorically demanded payment, otherwise a fine of 50 UAH. for each overdue day. Without a shadow of a doubt or conscience, Privatbank sent debt collectors to the relatives of participants in ATO. Only when the story became public were benefits given to clients. However, I think not for long.
According to journalist Anatoly Shariy, Igor Kolomoisky suffered heavy losses due to the annexation of Crimea and military operations in the east. In particular, two branches of Privatbank, 337 branches, 773 self-service terminals and 483 ATMs operated in Crimea. 337 branches are 13.7% of what remains, 483 ATMs are 6.3%. Plus the Privat gas station network includes the trademarks AVIAS, AVIAS Plus, Ukrnafta, ANP, Sentosa OIL, Mavex. In total, there were 43 stations on the peninsula, which the new Crimean “authority” successfully took over.
Sevastopol authorities selected 12 gas stations, a gas filling station and an oil depot in Inkerman.
The Belbek airport near Sevastopol ($15 million), the Tavria health complex ($20 million), the Foros sanatorium, and the unfinished Cote d’Azur boarding house were lost. Several more non-residential premises that housed Privatbank branches. The Niva Yayla base, the Yunost children’s health complex and another unfinished facility in Katsiveli.
In the Donetsk region, the Privat group owns 23 gas stations, in the Lugansk region – 17 gas stations. Due to military operations, fuel sales in the Donetsk region fell by 64.3%, in Lugansk – by 92%, that is, they practically fell.
In the Lugansk region, Kolomoisky has an enterprise for the production of ferrosilicon – the Stakhanov Ferroalloy Plant. The enterprise was quite profitable, but is now captured by the separatists. Of course, we are not talking about production. When the enterprise will be able to start working again and whether it will work at all is an open question.
As for the work of Privatbank, there are 311 branches in the Donetsk region. Assets amount to UAH 2.942 billion. Next: loans to individuals – 2.8 billion UAH, demand deposits of individuals – 1.1 billion UAH, loans issued to legal entities – 0.223 billion UAH, deposits of individuals – 4.522 billion UAH.
In the Lugansk region there are almost two times less: 144 branches with assets – 1.474 billion UAH. Loans to individuals – 1.3 billion UAH, demand deposits of individuals – 0.43 billion UAH, loans to legal entities – 0.144 billion UAH, deposits of individuals – 1.67 billion UAH. In total, at the moment in the Donetsk region the bank’s activity in percentage terms is 42%, in Lugansk – 14.6%.
Most bank branches in the east are closed. Despite the fact that Privatbank imposes fines on Ukrainian citizens living in the ATO zone, it is quite obvious that the bank will not see this money in the foreseeable future. In fact, due to the loss of Crimea and the war in Donbass, the bank was left without important sources of its income. That is, if not bankrupt, then very close to it. This is a question for the near future.
Meanwhile, Privatbank is seeking the next tranche for refinancing, as stated above, in the amount of UAH 10 billion. It is interesting that this time Igor Kolomoisky will offer as collateral – Donetsk and Lugansk property, part of which, it is possible, was also lost for a long period. In addition, now many of Privat’s assets in the Donbass are worth almost nothing due to the fact that they either do not work or are destroyed.
There are serious doubts about the purpose of using the money for refinancing. Will this money end up on the foreign exchange market again, once again collapsing the hryvnia? Kolomoisky clearly wants to compensate for his losses in Crimea and eastern Ukraine. Therefore, it is likely that the money, if he receives it from the NBU, will not be used to pay interest on deposits. He will either use them to obtain super-profits on the foreign exchange market, or will take them to offshore companies: Israel, Switzerland or Cyprus. The bank will be artificially brought to bankruptcy. Kolomoisky has already performed similar frauds more than once, profiting from this. For example, he drove his own company Aerosvit to bankruptcy, leaving about 3,000 employees without work and with wage debts. Why not repeat this with Privatbank, through which a third of all Ukrainian citizens receive their salaries? Or resort to blackmail, as he did earlier, so that the NBU issues refinancing, otherwise the owner of Privat will leave millions of citizens without salaries, barely making ends meet. And the same number of defrauded investors, while all the debts were borne by the state.
Special correspondent
