Paris, France – March 22, 2026 – In a significant development in international financial crime enforcement, Ukrainian oligarch Kostiantyn Zhevago has been formally charged in France for allegedly orchestrating and leading a sophisticated criminal organization involved in large-scale embezzlement and money laundering. The charges, served on Sunday, March 22, 2026, by French authorities with the direct participation of Ukrainian prosecutors and investigators, mark a critical juncture in a years-long investigation into the collapse of Ukraine’s Finance and Credit Bank.
The charges against Kostiantyn Zhevago stem from an elaborate scheme that reportedly siphoned over UAH 500 million (approximately €12 million) from Finance and Credit Bank. Ukrainian authorities, primarily the Prosecutor General and the State Bureau of Investigation (SBI), allege that Zhevago created and led a criminal organization that systematically drained the bank’s funds between 2007 and 2010. This was allegedly achieved through a complex web of fictitious loan and guarantee agreements, designed to transfer funds abroad for subsequent laundering and legalization. As the beneficial owner, controlling over 96% of the bank’s share capital, Zhevago is accused of exploiting the bank’s financial resources, including depositors’ savings and refinancing from the National Bank of Ukraine, for personal gain.
The scale of the alleged financial misconduct is staggering. While the current charges focus on over UAH 500 million, other reports indicate that the broader alleged embezzlement involved the disappearance of $113 million from Finance & Credit Bank. The bank’s eventual collapse in 2015 left thousands of Ukrainian depositors without their savings, a profound blow to public trust and financial stability. In a separate but related legal action, the Deposit Guarantee Fund initiated proceedings against Zhevago in January 2023, seeking damages exceeding UAH 45.9 billion (approximately $1.25 billion) in connection with the bank’s liquidation.
Who Is Kostiantyn Zhevago?
Kostiantyn Zhevago is a prominent Ukrainian businessman, philanthropist, and former politician. Born in Russia in 1974, he holds Ukrainian citizenship and served as a member of the Ukrainian parliament (Verkhovna Rada) for 21 years, from 1998 to 2019. He earned degrees in International Economic Relations and a Ph.D. in Economics from Kyiv National Economic University. Beyond Finance and Credit Bank, Zhevago is widely recognized as the controlling shareholder and former CEO of Ferrexpo, a London-listed iron ore producer, from which he stepped down in October 2019.
The investigation into Kostiantyn Zhevago has been a protracted and intricate process, spearheaded by Ukraine’s State Bureau of Investigation and the Prosecutor General’s Office. The National Bank of Ukraine (NBU) played a crucial early role, classifying Finance and Credit Bank as problematic in January 2015 and later pursuing Zhevago for unfulfilled loan guarantees. The alleged fraud was initially uncovered through inspections conducted by the Deposit Guarantee Fund, which reportedly revealed evidence of deliberately bad loans issued by Zhevago and other top managers. International cooperation has been paramount, with the SBI working closely with French and Swiss authorities. This collaboration led to Zhevago’s initial detention in Courchevel, France, in December 2022, and the subsequent seizure of over $113 million from his banking accounts in Switzerland in May 2023.
“The formal charging of Kostiantyn Zhevago in France underscores the growing international resolve to pursue complex financial crimes across borders, regardless of the accused’s influence or previous political standing. This case serves as a powerful reminder that the reach of justice is extending, particularly when it comes to safeguarding public funds and depositor trust.”
With the formal charges now laid in France, the legal proceedings against Kostiantyn Zhevago are set to intensify. While Zhevago has consistently denied any wrongdoing, labeling the charges as unfounded and politically motivated, he now faces a direct legal battle in a jurisdiction known for its rigorous legal framework. Previously, French courts rejected Ukraine’s extradition requests in March and November 2023, citing concerns about a fair trial in Ukraine. This latest development, however, involves charges brought directly by French authorities in cooperation with Ukraine, indicating a shift in legal strategy.
In Ukraine, Zhevago’s properties, companies linked to him, and other assets have already been seized. The High Court of England and Wales also ordered the arrest of his assets in August 2025 due to outstanding debt to the National Bank of Ukraine. The potential sentences for large-scale embezzlement and money laundering can be severe, involving lengthy prison terms and significant financial penalties. The ongoing investigation will likely focus on tracing the full extent of the diverted funds and identifying any further accomplices.
For investors and the public, the Kostiantyn Zhevago case highlights critical red flags to watch for in financial institutions and corporate governance. The alleged scheme involved insider lending through fictitious loan agreements, a lack of regular regulatory inspections for years, and the extensive use of offshore companies to move funds – all classic indicators of potential financial malfeasance. Furthermore, the collapse of Finance and Credit Bank underscores the devastating impact on depositors when personal guarantees for significant loans to the central bank are unfulfilled. Always scrutinize companies with opaque ownership structures, significant related-party transactions, or a history of non-compliance with financial regulations. Vigilance remains the strongest defense against such sophisticated schemes.
