The Privat Group, or PrivatBank Group (, romanized: Hrupa "Pryvat") is a global business group, based in Ukraine. Privat Group controls thousands of companies of virtually every industry in Ukraine, the European Union, Georgia, Ghana, Russia, the United States, and other countries. Steel, oil & gas, chemical and energy are sectors of the group's prime influence and expertise. None of the group's capital is publicly traded on any stock exchange.
The business group was grouped around PrivatBank. On 18 December 2016 this bank was nationalized by the government of Ukraine, taking 100% ownership.
The group was founded and is controlled by the billionaire businessmen Hennadiy Boholyubov, Oleksiy Martynov, and Ihor Kolomoyskyi (the latter is the richest and leading partner that is best known to the public).[1]
As a business-oligarch entity, Privat Group controls some prominent Ukrainian media, maintains close relations with politicians, and sponsors professional sports.
Key businesses of the group (as well as nationalized PrivatBank itself) are based in Dnipropetrovsk Oblast. The group's founding owners, natives of Dnipro, made their entire careers there.
History
In 1990, the graduates of the Dnipropetrovsk universities, Gennadiy Bogolyubov, Ihor Kolomoyskyi and Oleksiy Martynov, created the first joint business: Bogolyubov and Kolomoisky bought the office equipment in Moscow, and Martynov was engaged in its marketing in Dnipro. After the collapse of the USSR, friends returned to Dnipropetrovsk and began to import various goods - from sneakers and sportswear to telephones. At this stage, they had a fourth partner, the son of a major Soviet entrepreneur, Leonid Miloslavsky. Each of the partners owned 25% in the total business.[2] To pay for imported goods, the partners set up the export of steel products, Kolomoisky was in charge of this. Soon they realized that it was more profitable to trade the metal, and then they started to import oil products and began to buy the premises for their storage and transportation. They also took up the ferroalloy direction: the group supplied fuel to the Pokrovsky (Ordzhonikidzevsky) GOK, receiving in return manganese ore and sending it for export; Martynov was responsible for this direction.[2]
In 1992, Serhiy Tihipko, the former head of the Dnipropetrovsk Komsomol Party, suggested to Miloslavsky to set up a bank. Kolomoisky initially opposed this idea, but eventually agreed [2]. In March 1992, four companies — Vist LLC, Sentosa LLC, Som LLC, and Privat-Intertreyding CJSC — established Privatbank CJSC.[3]
Assets
Metallurgy
Privat-Intertreyding is controlling the Pokrovsky, Marganetsky, Yuzhny (together with the Russian Smart Group) mining and processing plants. In metallurgy, is controlling the Dnipropetrovsk Metallurgical Plant of Comintern, Dnipropetrovsk Metallurgical Plant of Petrovsky, Nikopol Ferroalloy Plant, Stakhanov Ferroalloy Plant, Zaporizhzhia Ferroalloy Plant and Russian Alapaevsk Metallurgical Plant.[3]
At the end of 2007, Privat completed the sale of its metallurgical assets to the Russian Evraz group: the Sukhaya Balka mining and processing plant, the Dnipropetrovsk Metallurgical Plant of Petrovsky and three coke chemicals (Dneprodzerzhinsky Coke and Chemical Plant, Baglecox, Dneprokoks).[3]
Fuel industry
Kolomoisky was a major shareholder of Ukrnafta (42% of shares in 2008).
Structure
The businesses of Privat Group are not formally included in a corporation, and its top managers sometimes state that there is no such group at all.[7] However, either PrivatBank or "Privat-Intertrading" company indirectly own all companies regarded as parts of the group. Typically, industrial companies are controlled through a complicated chain of offshore companies. Despite this, the Ukrainian public has a clear understanding of what exactly belongs to the group. To describe such relations, the media use the wording “company X is controlled by the Privat Group" or "the business of the X company is being organized by the PrivatBank". The group never denies such statements.
Steel industry
Various steel companies form the core of the Privat Group, presenting a full manufacturing chain of metallurgy. This oldest and most important part of the group is mostly located in and around Dnipro (location specified in parenthesises below).
Ore mining and processing companies
Relations and controversies
Privat Group is involved in a permanent and fierce business conflict with Ukrainian oligarch Viktor Pinchuk and his Interpipe Group. The groups are based in Dnipropetrovsk Oblast, sharing a long and complicated history of relations. Presently, the conflict focuses on the bilaterally owned Nikopol Ferroalloys Plant (Interpipe now controls the plant’s business). Both sides apply full-scale legal, public relations and political methods in the conflict. Ihor Kolomoyskyi (the main owner of Privat Group) and Pinchuk sometimes insult each other in their interviews.
Henadiy Korban, one of Privat Group's top managers, survived serious assassination attempts in Dnipro in March 2006, and again in September 2010.[15]
Before the Orange Revolution, Privat Group had been widely regarded as relatively uninvolved in politics, but loyal to the Leonid Kuchma regime. After the government change, the group's owners, according to media, became close allies of Yulia Tymoshenko (although she publicly denies this). Analysts agree that some of Tymoshenko's decisions as the Prime Minister of Ukraine supported Privat side in conflicts.
Some sources state that Privat Group provided significant financial support for Viktor Yuschenko during his presidential campaign and subsequent Orange Revolution
See also
- Economy of Ukraine
- Dnipropetrovsk Mafia
External links
References
- Ihor Kolomoyskyy Forbes, retrieved 2025-12-29^
- Елена Шкарпова. Неизвестные факты из жизни Игоря Коломойского Forbes, 2012-09-03, retrieved 2013-01-04^
- Приват — финансово-промышленная группа компаний UBR, retrieved 2013-01-04^