KYIV - September 3, 2023 - Prominent Ukrainian businessman, Ihor Kolomoisky, has been taken into custody following allegations of fraud and money laundering. The decision was made by a Ukrainian court which mandated his detention for two months. This act is seen as a bold move against one of Ukraine's most influential business figures.

Kolomoisky, currently facing U.S. sanctions, once supported President Volodymyr Zelenskiy, endorsing his election in 2019. This arrest emerges as Kyiv intensifies its efforts to combat corruption amidst wartime, signaling its commitment to reform.

In a televised address on the same day, President Zelensky acknowledged the law enforcement's efforts, saying, "I thank the Ukrainian law enforcement for their determination to bring every case stalled for decades to a just conclusion." He emphasized that the law "must work," signaling an end to the impunity previously enjoyed by influential figures. The President vowed for an end to the longstanding "business as usual" approach for those who have exploited Ukraine.

Earlier on September 2, the Shevchenkivskyi district court in Kyiv ordered Kolomoisky's arrest until October 31, with a bail set at Hr 509 million ($14 million). In a turn of events, Kolomoisky's lawyers announced later that day that their client would not meet the bail amount. They plan to appeal by September 7, arguing that the court made several procedural mistakes. The court hearing, notably, was closed to the public upon the defendant's request.

The morning saw Ukraine's Security Service (SBU) releasing photographs of their confrontation with Kolomoisky at his residence, and the subsequent search operations. He was officially charged with fraud and money laundering during this search. As per SBU's statement, the tycoon is believed to have laundered more than Hr 500 million ($13.5 million) between 2013 and 2020.

Kolomoisky's past is not devoid of controversies. He had previously controlled Ukrtatnafta, Ukraine's leading refining company, until the government took control last November, deeming it crucial during martial law. Moreover, the company allegedly dodged taxes worth Hr 3.2 billion ($90 million) last year.

Furthermore, Kolomoisky held a significant share in Ukrnafta, an oil and gas extraction company, through various subsidiaries. The state seized this entity last year. His association with PrivatBank, the nation's largest bank, ended in scandal when it was nationalized in 2016 due to fraudulent activities leading to a $5.5 billion deficit. Over the past decade, Kolomoisky's business operations have consistently been mired in controversies.