You're reading: Poroshenko’s bank admits withdrawal of Yanukovych son’s money, cites inability to block transaction

The International Investment Bank (IIB) owned by Ukraine’s President Petro Poroshenko admitted that Hr 2 billion had been withdrawn by companies and individuals linked to Oleksandr Yanukovych, the son of ousted Ukrainian President Viktor Yanukovych.

But at the same time, the bank claimed it was never legally entitled to prevent the transactions.

“According to Ukrainian legal requirements, the bank could not deny one from opening an account or commencing corresponding operations envisaged by legislation, its statute or its license,” the bank’s press service stated.

“(The individuals associated with Yanukovych) opened accounts in IIB on the same terms as proposed to all individual clients. Such provisions are publicly available. IIB had no lawful causes to deny to open accounts to the above mentioned individuals.”

Earlier, on Nov. 8, Radio Free Europe/Radio Liberty’s Schemes investigative project reported that several employees of the Ukrainian Development Bank (Vseukrainsky Bank Rozvytku, or VBR), which used to belong to Oleksandr Yanukovych, each withdrew up to Hr 80 million in cash from the International Investment Bank.

The Yanukovych family was put under international sanctions following the 2014 EuroMaidan Revolution, and some Hr 2.5 billion on the VBR bank accounts were arrested as part of an investigation into money laundering.

However, in 2016, the Pechersk District Court of Kyiv lifted the arrest as the Interior Ministry and Prosecutor General’s Office, according to the court, failed to prove illegal origins of these assets.

As a result, the employees of the liquidated VBR bank withdrew a total of Hr 2 billion ($72 million) in 2016-2017 via Poroshenko’s IIB bank. Poroshenko’s bank earned approximately Hr 20 million ($716,000) on the transactions, charging a one percent cash withdrawal fee, according to the Schemes.

“Honoring the court’s decision on lifting the arrest of assets, the IIB has no right to challenge the lawfulness of the legal judgements and prevent clients from managing their own assets, which are considered to be legal by the court,” IIB’s press service said, adding that over Hr 200 million ($7.15 million) on its accounts remain frozen.

Ukraine’s president personally owns some 9.1 percent of the bank shares, and also controls some 50.1 percent through his asset-management company Prime Assets Capital.

In its comment to the Ukrainska Pravda media outlet, the Presidential Administration nonetheless noted that Hr 44 billion ($1.57 billion) of Yanukovych’s illegal money has been returned to the nation thanks to the Prosecutor General’s Office of Ukraine.

“All these assets were refunded to the state budget because of of a law approved by the Verkhovna Rada and signed by the president,” Poroshenko’s office asserted. “He demonstrates obvious political will in this aspect.”