Oleg Bakhmatyuk, a Ukrainian agricultural tycoon and suspect in a large-scale embezzlement case, was placed on a national wanted list on Nov. 21 by the National Anti-Corruption Bureau of Ukraine (NABU).
NABU is investigating Bakhmatyuk for alleged involvement in embezzling $49 million dollars from a stabilization loan issued to his now defunct VAB Bank.
In November 2014, Ukrainian authorities declared the bank insolvent and took control of its assets. In a 2015 interview, Valeria Gontareva, then the National Bank governor, said that VAB and Financial Initiative, Bakhmatyuk’s other bank, had 64% and 96% insider loans, respectively.
According to the National Bank of Ukraine, Bakhmatyuk owes the state $1 billion.
In a Nov. 18 interview with the Kyiv Post, Bakhmatyuk acknowledged having insider loans, but said the practice was common in Ukraine at the time. He said his banks were undercapitalized because of the 2014 economic crisis in the country, caused in part by Russia’s invasion.
“All the banks had connected credits, as it turned out eventually,” said Bakhmatyuk “You think there’s only Bakhmatyuk to take responsibility? What about the war? What about inflation?”
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On Nov. 11, NABU detained seven people on charges of embezzling the $49 million. Most people arrested were former staff members of Bakhmatyuk’s VAB Bank and employees of companies connected to the businessman.
However, among them was also Alexander Pisaruk, the head of Raiffeisen Bank Aval. Previously, he had served as deputy governor of the National Bank in 2014–2015 and played an important role in declaring banks insolvent.
NABU believes that Bakhmatyuk conspired with Pisaruk to illegally get a stabilization loan for his bank, which they then embezzled. NABU notes that the loan was issued just a month before the National Bank declared VAB insolvent, something that appears suspicious.
In an interview with the Kyiv Post, Pisaruk called the suggestion that he colluded with Bakhmatyuk “almost a personal insult.”
He, the National Bank and Bakhmatyuk all deny wrongdoing.
