LONDON (Reuters) – Ukrainian billionaire Kostyantyn Zhevago has won a bid to throw out a London lawsuit over allegations he embezzled money from the now bankrupt lender Finance & Credit Bank.
Zhevago, who controls London-listed iron pellet producer Ferrexpo, was being sued on behalf of the bank in which he had a 95% indirect shareholding before its 2015 collapse.
WWRT Ltd, a company that claims it was ultimately assigned Finance & Credit Bank’s right to sue, brought the case at London’s High Court. It accused Zhevago of procuring loans from the bank to companies controlled by him.
Zhevago, who served in Ukraine’s parliament from 1998 to 2019, has repeatedly denied any wrongdoing and argued that any case relating to the alleged fraud should not be heard in London.
Judge Richard Jacobs upheld Zhevago’s challenge in a written ruling delivered on Friday. Lawyers representing Zhevago and WWRT did not immediately respond to requests for comment.
The ruling is a victory for Zhevago, 50, who is facing legal challenges amid Ukraine’s efforts to clamp down on corruption despite Russia’s full-scale invasion, which is vital to meet the conditions for joining the European Union.
He was arrested at a French ski resort in 2022 at the request of Ukraine. Zhevago has since been released on bail and successfully resisted attempts to extradite him.
Ukrainian prosecutors have also taken action in the Ukrainian courts against Zhevago and frozen shares held by Ferrexpo, in its three Ukrainian subsidiaries.
Ferrexpo is also in a dispute with the Ukrainian government over royalty payments.
(Reporting by Sam Tobin, Editing by Timothy Heritage)
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