Ukraine’s main security agency, the Security Service of Ukraine (SBU), published a statement on Saturday handing criminal charges to Ihor Kolomoisky related to money laundering and fraud in his oil and gas holdings. Local news reported that the Shevchenkivskyi District Court of Kyiv ordered Kolomoisky to be held until the end of October. He was allowed to post bail in excess of $14million as long as he fulfils a number of conditions, such as not travelling abroad. The Ukraine Prosecutor’s Office is supervising the pre-trial investigation, which is still on going.

The SBU said that Kolomoisky is alleged to have laundered over half a billion Ukrainian gryvna between 2013 and 2020 by taking advantage of the banks he has control over. Kolomoisky controlled Ukrtatnfta, a Ukrainian oil refining company, before it was seized by the government after missing taxes amounting to over $80million in 2022. He also co-owned PrivatBank, which was nationalised in 2016 after $5.5B in missing funds.

Ihor Kolomoisky’s arrest is part of a large scale anti-corruption drive that started at the end of 2021 during the Russian invasion which includes targeting and seizing illegally acquired assets from oligarchs and high-ranking figures. SBU Head Ivan Bakanov released a statement highlighting how damaging domestic corruption is on Ukraine’s economy during its war with Russia, saying, “In the current environment, the aggressor does not necessarily have to seize territory – it is enough to undermine economy, create obstacles for strategic enterprises, encourage corruption and smuggling, etc.”

Bakanov has uncovered illegal attempts from criminal gangs to export military equipment attempts, as well as artillery components that did not fit control procedures. The anti-corruption drive also includes a focus on officials abusing their powers and signing profitable contracts to private entitles, especially in the agricultural sector, which causes massive state losses and increased prices for consumers during the war.