The list of assets of ex-owner of PrivatBank Ihor Kolomoisky outside Ukraine and Russia, confirmed by him under oath in January 2018, with an estimated value of approximately GBP 1 million or more (non-U/R asset list) ran to 18 pages, Judge Trower said on February 21, 2021 during the hearing initiated by PrivatBank over one of the assets.
According to the published decision, the asset disclosures made by Kolomoisky relating to his assets outside Ukraineand Russia initially took the form of an asset list provided early January 2018, which described 40 assets.
The updated list was prepared in six columns headed respectively: Asset Description, Trading/Non-trading, Location, Detail, Estimated Value (USD) and Encumbrance (if any).
"A significant number of these assets were Mr Kolomoisky's interests in companies located in a number of different jurisdictions. The reference to Trading/Non-trading was a relevant detail because the freezing order as varied did not prohibit dealings or disposals in the ordinary and proper course of business, nor did it require notification to Hogan Lovells [lawyers of PrivatBank] of dealings or disposals in the ordinary and proper course of business by any trading company," the judge said.
He also reminded that the list of these assets under worldwide freezing order is confidential information.
According to the judge, apart from Mr Kolomoisky's interests in the companies identified in the updated asset list, the other main types of asset were claims against third parties described variously as a debt or a chose in action.
According to the document, at various points during the course of 2018, Mr Kolomoisky produced further updates to the non-U/R asset list. The judge said that Mr Kolomoisky has directed his attention to addressing queries from the Bank regarding his asset disclosures and the use has made some 89 notifications to Hogan Lovells since the freezing order was originally granted, and has sought consent in order to proceed with certain transactions on in excess of 120 occasions.
The February trial involved investments of about $50 million by the former owner of PrivatBank in bitcoin mining involving Kolomoisky's Georgian Manganese LLC and Vartsikhe 2005 LLC, an investment placed by way of oral agreement with Mr Aleksi Kuchukhidze with a right to receive the lesser value of 50,000 Bitcoin or $1 billion in January 2021. However, according to the document, the Bitcoin mining operations only took place for 17 months. Production of Bitcoin stopped in September 2019, at which stage a total of 3,533.3 Bitcoin had been mined. After payment of expenses and reimbursement to GM of the original investment, the current balance was approximately 800 to 1,000 Bitcoin of which Mr Kolomoisky was entitled to 90% (at the current exchange rate it is about $46,400).
The bank issued an application for an order that Mr Kolomoisky attend to be cross examined before a High Court judge in relation to his assets, but Judge Trauer denied it.
During the hearings, the Bank also expressed concern that Kolomoisky did not disclose its assets or that their description contains differences, in particular with regard to receivables, trading/non-trading classification and ownership structure. In relation to all three of these categories, it may be the case that the bank will wish to formulate further focused interrogatories in relation to the terms and incidents of these debts which are justified as a necessary basis for their preservation, but that is not the focus of the application today. Judge Trower said that it could be done at some stage in the future.