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Kostyantyn Zhevago

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In this name that follows Eastern Slavic naming customs, the patronymic is Valentynovych and the family name is Zhevago.

Kostyantyn Zhevago
Костянтин Жеваго
People's Deputy of Ukraine
In office
March 1998 – 29 August 2019
Preceded by
Succeeded by
Constituency
Personal details
Born (1974-01-07) 7 January 1974 (age 50)
Iultin, Chukotka Autonomous Okrug, Magadan Oblast, former Soviet Union, and spent his childhood in the city of Dniprorudne, Zaporizhia region, Ukraine. He has been a citizen of Ukraine since 1991.
Political partyIndependent[1]
Other political
affiliations		Yulia Tymoshenko Bloc (2006-2012)[2]
SpouseAlina
Childrenson Ivan and daughter Sofiya
Residence(s)Kyiv, Ukraine[3]
Alma materKyiv National Economic University
Websitehttp://rada.gov.ua

Kostyantyn Valentynovych Zhevago (Ukrainian: Костянтин Валентинович Жеваго, Russian: Константин Валентинович Жеваго; born 7 January 1974) is a Ukrainian businessman, philanthropist and politician. He was a member of the Verkhovna Rada (parliament of Ukraine) continuously for 21 years from 1998 until 2019. Executive Director of Ferrexpo in 2008-2019.

Early life and career

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He was born in the family of a mining engineer in the village of Iultin, Chukotka Autonomous Okrug, Magadan Oblast, former Soviet Union, and spent his childhood in the city of Dniprorudne, Zaporizhia region, Ukraine. He has been a citizen of Ukraine since 1991.

Kostyantyn Zhevago graduated from school with honors. In 1991, Zhevago entered the Kyiv National Economic University (now Kyiv National Economic University named after Vadym Hetman), specialising in accounting and analysis of foreign economic activity. In 1996, he graduated with a degree in International Economic Relations and obtained a master's degree in Economics with a specialization in International Economics. In 2003, Kostyantyn Zhevago earned a PhD in Economics with a thesis in international investments and effective economic development at Kyiv National Economic University.

Business

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1993–1996 — Financial Director of Finance and Credit JSC. 1996–1998 — Chairman of the Board of Finance and Credit Bank, Deputy Chairman of the Supervisory Board of Ferrexpo Poltava Mining and member of the Supervisory Board of Ukrnafta.

Kostyantyn Zhevago, a 34-year-old investor, became the first Ukrainian billionaire to make the Ferrexpo company public. It was the first company with assets in Ukraine whose shares started trading in the main market of the London Stock Exchange and still have premium listings on LSE. The company is a member of FTSE250 and FTSE4Good Indices. As the largest shareholder of Ferrexpo, Kostyantyn Zhevago supported and made decisions on investments in Ukraine, as a result of which Ferrexpo invested more than $3 billion in Ukrainian assets.

In 2007 Forbes magazine named Kostyantyn Zhevago the world's youngest billionaire, who made his fortune by himself. His bank Finance and Credit was among the TOP-10 largest Ukrainian banks with hundreds of branches across Ukraine (liquidated at the end of 2015). Throughout his career, Kostyantyn Zhevago has held leadership positions on the supervisory and management boards of various Ukrainian and international companies across industries such as mining, metallurgy, machine-building, pharmaceuticals, and food. He was also the largest shareholder of Avtokraz, where he invested significantly in the development of defense equipment, including the chassis for the Neptune missile complex, which played a pivotal role in the destruction of the Russian Black Sea Fleet's flagship Moscow (Moskva), the wheeled self-propelled howitzer Bogdana, with which it was possible to recapture Zmiiniy Island in the Black Sea, the base for the Verba multiple launch rocket system. He owns the Ukrainian Premier League football team Vorskla (Poltava).

Political activity

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He was elected to the Verkhovna Rada of Ukraine at the age of 24 on May 12, 1998 and until May 14, 2002 and was a People's Deputy of Ukraine from Ukraine's 149th electoral district, located in Poltava Oblast. Member of the Committee on Economic Policy, National Economy Management, Property and Investments.

From May 14, 2002 to May 25, 2006 — People's Deputy of Ukraine of the 4th convocation from 150th electoral district of Poltava region. Member of the Committee on Legal Policy, member of the Permanent Delegation of the Verkhovna Rada of Ukraine to the Parliamentary Assembly of the Council of Europe. Was a member of the "European Choice" group, the "Regions of Ukraine" faction and "Reforms and Order". From May 25, 2006 to November 23, 2007 — People's Deputy of Ukraine of the 5th convocation from the "Tymoshenko Bloc", No. 62 on the list. Member of the Committee on Legal Policy. From November 23, 2007 — People's Deputy of Ukraine of the 6th convocation from the "Yulia Tymoshenko Bloc", No. 62 on the list. Member of the Committee on Legal Policy, member of the Special Control Commission on Privatization. Head of the deputy group on inter-parliamentary relations with Japan.

In the 2012 parliamentary elections, he ran for People's Deputy as a self-nominated candidate in 150th single-mandate majoritarian constituency in Poltava region (centered in the city of Horishni Plavni) and won, gaining 61.20% of the vote. Member of the Verkhovna Rada of Ukraine Committee on Legal Policy, independent member of parliament. In the 2014 parliamentary elections in Ukraine, he ran again as an independent candidate in the 150th electoral district, where he won, receiving 43.81% of the vote. Member of the Committee on the Rule of Law and Justice, independent. Candidate for People's Deputy in the 2019 parliamentary elections (again as an independent candidate in the 150th electoral district). He lost to the candidate from the ruling party "Servant of the People".

Controlled assets

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Over the course of his career, he has held senior roles on the supervisory and management boards of numerous Ukrainian and international companies, spanning industries including mining, metallurgy, machinery, pharmaceuticals, and food.

"Finance and Credit" bank was founded in 1990 and by the size of assets it was considered one of the largest banks of Ukraine according to classification of National Bank of Ukraine. By 1 April 2009 the authorized capital stock of the bank made ₴2 billion, net wealth made ₴18,316 billion, bank liabilities — ₴15,840 billion. The loan portfolio made ₴15,880 billion, loan portfolio of natural person — bank clients — ₴5,983 billion. By 1 April 2009 the bank system included 16 branches and 326 departments in all areas of Ukraine. According to the Ukrainian Bank Association data, by 1 April 2009 the bank was among TOP-10 banks from 162 operating in the country.[4] On 17 December 2016 the National Bank of Ukraine withdrew the banking license of Finance and Credit and liquidated the bank.[5]

Group companies

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  • Real estate

JSC «F&C Realty», Hotel «Salute» Kyiv, Institute «Kyivsoyuzdorproekt»

  • Energy companies

JSC “Bilotserkivska teploelektrotsentral”, Ukrenerhosbut, Ukrainian-German «Mega-motors»

  • Chemical industry

JSC «Rosava», Stakhanov factory of technical carbon, Zatisnyansk chemical factory

  • Machine Building and Engineering

AvtoKrAZ, Uzhhorod «Turbogaz», Stakhanov carriage works, Berdychiv machine-shop «Progress»

  • Shipbuilding

Zaliv Shipbuilding yard, “Kyiv shipbuilding and ship repair factory”

  • Metallurgy and Resources

Biggest shareholder of Ferrexpo Poltava Mining, Skopski Legury (ferro-alloys), Electrometallurgical plant «Vorskla Steel» (in the process of building), Electrometallurgical factory «Vorskla steel Denmark»

  • Pharmaceutical industry

Significant equity stakes in the JSC “Kyivmedpreparat”, “Gemoplast”, “Halychfarm”.

  • Food processing industry

Significant equity stakes in PJSC Company Kremenchukmyaso

Wealth

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According to Forbes, he was the world's youngest billionaire. According to estimates by Korrespondent magazine, Kyiv Post newspaper and Dragon Capital company, Zhevago's assets in 2006 amounted to $1.9 billion, he ranked fifth among the richest Ukrainians. According to the Forbes magazine list in March 2012, Zhevago ranked #719 in the world and #4 in Ukraine with $1.8 billion. In the NV magazine rating of the "Top 100 Richest Ukrainians", published in October 2019, Zhevago's wealth was estimated at $744 million (an increase of 30% compared to 2018); 9th place in the rating. In 2022, according to the Ukrainian magazine Forbes, Kostyantyn Zhevago entered the TOP-5 richest people in Ukraine.

Commercial proceedings

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After 3.5 years of trial, on 2 October 2019, the Shevchenko Court of Kyiv ordered to collect ₴1.5 billion from Zhevago in favor of the National Bank of Ukraine. The decision explains that Kostyantyn Zhevago did not want to fulfill his obligations under the surety agreement to repay the bank's refinancing loans.[6] On 13 December, the Kyiv Court of Appeal returned Zhevago's appeal without consideration due to non-payment of the court fee within the specified time frame, after which the court's decision on compulsory collection entered into force.[7]

On 3 December, Zhevago was declared an international wanted man and permission was granted for his detention.[8]

Criminal proceedings

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In the summer of 2019, when the active phase of the parliamentary elections campaign began in Ukraine, on the day Zhevago registered as a candidate for People's Deputy of Ukraine, criminal proceedings were opened against him regarding his possible involvement in embezzlement of ₴2.5 billion. The State Bureau of Investigation summoned Kostyantyn Zhevago for questioning on 27 September 2019. According to the inspection data of the Deposit Guarantee Fund, Zhevago and another top manager of the Finance and Credit bank allegedly issued several deliberately bad loans in the amount of almost ₴5 billion in order to get hold of the money.[9] This case has been carried to date and has not been trialed for more than 5 years. In addition, according to Zhevago's lawyers, the State Bureau of Investigation has not provided any information regarding this criminal case for many years, which violates his and other accused managers constitutional rights to a fair trial.

According to the investigation, in 2007-2014, the offshore company opened several credit lines in foreign banks. Pledge agreements in the amount of $113 million were concluded between the Finance and Credit Bank and foreign banks. The Ukrainian bank vouched for the offshore company with its own funds on accounts in foreign creditor banks. In 2015, foreign banks charged $113 million from the accounts of the Finance and Credit bank for non-fulfillment of obligations by the offshore company under contracts. The collateral was written off when the bank Finance and Credit was declared insolvent.[10] The investigation into this case has not been suspended for more than 5 years, and has not been trialed for the same period.

On 27 December 2022, Zhevago was detained in Courchevel, France at the request of Ukraine's State Bureau of Investigation. On 29 December 2022, the French court of Chambéry ordered the extradition arrest of Zhevago, he was notified of the suspicion of committing criminal offenses provided for in Part 3 of Art. 27, Part 5 of Art. 191, Part 3 of Art. 209 of the Criminal Code of Ukraine. Some top managers of the Bank "Finance and Credit" are also suspected.[11] This criminal case has not been trialed for over 5 years.

In March 2023, the Court in the French city of Chambery rejected the Ukrainian side's request for the extradition of Kostyantyn Zhevago, and on November 10, 2023, the Supreme Court of France rejected the Ukrainian appeal and ruled that Zhevago was not subject to extradition because Ukraine could not guarantee that Zhevago's case would be considered by an independent court. All restrictions on Zhevago were lifted.

In May 2024, Zhevago received a new suspicion of withdrawing UAH 519 million from the Finance and Credit bank in collusion with two deputies. This new criminal case is the case materials from September 2019 and has not been trialed for more than 5 years. According to the investigation, in 2007-2010, Zhevago created a criminal organization, which included the chairman, members of the board of the Finance and Credit bank and other persons close to him. A company controlled by Zhevago received a loan from the bank in violation of the rules, and then the money was subsequently withdrawn to offshore accounts. All these accusations are unfounded according to Zhevago's lawyers, and the specified loans have been repeatedly checked by the NBU (Ukrainian Regulator) for more than 7 years and no violations were detected in accordance with these loans.

Zhevago has been named as the party who allegedly bribed the Chair Person of the Ukraine Supreme Court Vsevolod Kniaziev in 2023.[12] On July 10, 2024, the court chose Zhevago in absentia as a preventive measure in the form of detention. Zhevago himself was in France at the time of the crime and at the beginning of the investigation, and denies any involvement in this case stating that the accusation is politically motivated.

See also

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References

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  1. ^ (in Ukrainian) National deputies of Ukraine:Kostyantin Zhevago, Verkhovna Rada
  2. ^ (in Ukrainian)Yulia Tymoshenko Bloc election list #62 Archived 2011-06-07 at the Wayback Machine, Central Election Commission of Ukraine
  3. ^ Biography Archived 2009-11-06 at the Wayback Machine, Ukrainian Parliament
  4. ^ "Активи та зобов'язання на 01.04.2009 р." www.aub.com.ua. Retrieved 17 May 2023.[permanent dead link‍]
  5. ^ NBU decides to liquidate bank Finance and Credit, Interfax-Ukraine (18 December 2015)
  6. ^ "Суд стягнув з Жеваго 1,5 млрд грн на користь НБУ". РБК-Украина (in Russian). Archived from the original on 26 October 2019. Retrieved 2 October 2019.
  7. ^ "НБУ почав примусове стягнення 1,5 млрд грн з Жеваго". РБК-Украина (in Russian). Archived from the original on 26 December 2019. Retrieved 26 December 2019.
  8. ^ "Суд дозволив арештувати Жеваго". РБК-Украина (in Russian). Archived from the original on 4 December 2019. Retrieved 4 December 2019.
  9. ^ "Жеваго викликали на допит в ДБР". РБК-Украина (in Russian). Archived from the original on 23 September 2019. Retrieved 23 September 2019.
  10. ^ "Жеваго оголосили підозру у розтратах в банку "Фінанси та кредит"". РБК-Украина (in Russian). Archived from the original on 27 September 2019. Retrieved 27 September 2019.
  11. ^ "Суд у Франції ухвалив рішення про екстрадиційний арешт Жеваго". Interfax-Ukraine (in Ukrainian). Retrieved 29 December 2022.
  12. ^ "Bail Set for President of Supreme Court Arrested on Bribery Charges". Kyiv Post. 19 May 2023.
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