Friends and Foes of Andriy Pyshnyi

Andriy Pyshny is being removed from the chair of the National Bank of Ukraine.

Despite the obvious status of an undesirable figure, Andriy Hryhorovych up to the last moment pretended that nothing extraordinary was happening. Then he publicly spoke about “prolonged political pressure, manipulation, a targeted and coordinated campaign of discreditation” and clearly signaled that he would not go anywhere.

The pressure is indeed present. 28 In October the head of the NBU was at a meeting with Volodymyr Zelensky, where he was unequivocally offered to write a resignation letter, but he refused. 30 In October Pyshny met with Kyrylo Budanov, who again conveyed the president’s request and also heard a refusal. When both failed, the task was delegated to Andriy Yermak, a close ally of Pyshny. However, even he could not cope.

Volodymyr Zelensky is angered by this, but Pyshny is correct: he is the head of an independent institution, and the grounds for his dismissal are enshrined in law, and the process itself requires parliamentary votes. Indeed, a draft resolution on dismissing Andriy Pyshny appeared in the Verkhovna Rada’s agenda, but there are currently no grounds for this dismissal.

So, no matter how much the president would like Pyshny to step down “for health reasons,” as with Shevchenko 2022, this scenario cannot be repeated. Andriy Pyshny understands that, just as in the case of his predecessor Shevchenko, suspicion could soon arise after the resignation.

Not that suspicions were not handed to current heads of national banks, but it’s a kind of faux pas — extra risks to financial stability and the country’s reputation. In our case, it’s surely better to wait for the status of former head.

The National Anticorruption Bureau’s investigation, which led its detectives with searches to Pyshny in the cabinet, according to ZN.UA’s sources in law enforcement, does not directly concern Pyshny’s work at the NBU. However, it casts a shadow on the reputation of one of the key negotiators with international partners, as well as on those who so vehemently want his dismissal.

Yes, there is no causal link to search for between the investigation and political pressure; the processes are parallel, but so far we have found no evidence of their connection. Recall at least the August “anti-Pyshny” escalation in Zelensky. Bloomberg attributed president’s discontent to Pyshny’s close ties with the IMF and tight monetary policy, although the Mandić tapes and Vesely’s surname had been public for several months.

Veseli ties

Thus, Vasyl Vesely is the backbone of the pyramid onto which the “rings” of other defendants in this case are placed, including Andriy Pyshny.

Although the public learned about Vesely’s influence only after the Mandić tapes, this story began much earlier. In the summer 2022, the Bureau of Economic Security and the Office of the Prosecutor General froze corporate rights of the Netherlands-based Karpaty Chemical B.V., which controlled the Karpatnaftohim plant — Kalush producer of ethylene, propylene and caustic soda. The reason: suspicions of tax evasion and laundering funds to entities linked to the Russian Federation. Within a month, the arrest was lifted by the court, then reinstated, then lifted again, then reinstated again. Finally, another court decided to transfer the plant to the Asset Recovery and Management Agency (ARMA). However, ARMA never received the plant.

The agency explained this with mysterious “errors by law enforcement,” which prevented accepting the production capacities into management, and thus finding a manager. In the end, the arrest of the asset was lifted again by the Mykolaiv City Court at the end of 2023. And the most interesting began — 33% of the plant with charter value 765 million UAH went to the fund “Geryon World,” owned by a private entrepreneur from Drohobych, Vasyl Vesely. And the brother of the new owner, Vasyl Vesely, headed the plant’s supervisory board. Buying a third of the plant by a private individual already looked suspicious, and this one is rumored to have taken place “without actual payment.”

Thus, the main version, according to our sources among law enforcement, is that 33% of the Karpatnaftohim shares were transferred as a bribe to remove the plant from under arrest and prevent its transfer to ARMA. The stake was re-registered to a person connected with the authorities — Vesely, and Andriy Pyshny acted as an intermediary in this scheme.

Karpatnaftohim is the former asset of Lukoil, which 2017-th passed to Ilkham Mamedov and Igor Shchutsky. The third covert co-owner was the late former MP, one of the leaders of the “People’s Front” party and longtime friend of Pyshny, Andriy Ivanchuk. He publicly denied joint ownership, although both Ihor Kolomoyskyy and former head of Ukrspirt Mykhailo Labutin claimed otherwise.

We sincerely believe that the new owners did not want any arrests or transfer to ARMA. During the investigation, a ZN.UA source says, evidence was obtained that Ivanchuk’s partners entrusted Pyshny with resolving “issues with law enforcement.” This is where Pyshny, who has known Ivanchuk since student years, came into play when Ivanchuk needed to resolve a “problem.” The investigation suspects that Pyshny acted as the intermediary who ensured the scheme’s implementation. The core of the evidence that convinced the court to sanction the search was proving Pyshny’s close ties with other defendants, including Vasyl Vesely.

In reality, proving this is difficult, given that Ivanchuk is dead and Mamedov and Shchutsky are not in Ukraine, but there must be something substantial in the evidence if the court agreed to such a high-profile move as a search.

Another question is why the search was not only at home but also in the NBU premises, if the case does not concern the “Sense Bank,” the direct sphere of influence of the NBU head. It’s more about Andriy Pyshny’s activities as Ivanchuk’s associate, not the head of the central bank.

The only common thread between “Karpatnaftohim” and “Sense” is Vasyl Vesely himself, and this thread leads to Bankova Street, which now so zealously seeks Pyshny’s resignation.

Unpleasant consequences

The fact that searches were conducted at the NBU may indicate that Vasyl Vesely visited there more than the two times mentioned by Andriy Pyshny in his ZN.UA interview.

It’s hard not to notice the persistence with which Andriy Pyshny distances himself from Vesely. Almost as from Yermak.

However, the elephant did not leave a free space in the room after the former head of the supervisory board of Sense Bank, Shevki Ajunyer, told the parliamentary Special Committee that Vasyl Vesely had been personally introduced to him by Andriy Pyshny as the person who “was to establish communication between the supervisory board and stakeholders.” This directly contradicted Pyshny’s own responses to that temporary investigative committee.

NBU insists there were no “any recommendations.” According to meeting protocols, it was Shevki Ajunyer who submitted to the bank’s appointments committee a proposal to invite Vasyl Vesely as a advisor to the supervisory board, proposed a monthly remuneration of 230 thousand UAH (during discussions it devalued to 150 thousand), and voted with everyone for the appointment.

Yes, Mr. Ajunyer, like everyone in this story, is an unreliable narrator. For example, his current version of appointing Oleksiy Stupan as head of the Sense’s board also differs noticeably from his own statements at the meeting protocol.

On the other hand, what else could there be? They told him to take it, he did everything to take it.

More importantly: Vasyl Vesely is a person with no experience in either communications or business, especially banking, yet he opened almost every door in the state with one foot. Someone must have “recommended” him, and presumably someone heavier than Andriy Pyshny.

This someone is the main beneficiary of the scheme to exchange Karpatnaftohim’s stake for removing the asset from under arrest and management by ARMA. Someone who had in the state so much influence — political, legal and financial — that only Bankova could withstand him.

For example, a film producer with a red thread on his wrist and suspected of money laundering in large amounts. He is closely familiar with Mr. Pyshny enough to agree to resolve Ivanchuk’s “problem,” also to his own benefit. “Nyet imet sfo rublëy,” as they say…

And while Pyshny heroically resists resignation under Bankova pressure and talks to lawyers, the film producer lives a perfectly ordinary life.

He is in constant contact with the president’s best friend. He solves problems. You won’t believe it, he’s making a film about his role in the release of Azov commanders. He helps the military resolve issues of varying complexity: from awarding decorations to avoiding personnel purges of Mykhailo Drapaty. It will be interesting to see whether justice reaches the hands of the court beyond the intermediary.

Legally Pyshny is protected from forced resignation until a court verdict. Considering that the investigation is ongoing and no suspicions have been raised, the head may well serve out the rest of the term in October 2029. However, these years will evidently not be peaceful.

Just in case, we have good news — a negative personnel filter at Bankova has resulted in currently no candidates to replace Pyshny. Very strict requirements — apparently you must have experience working in the banking sector to lead the central bank. So the only available head replacement is Pyshny’s first deputy Serhiy Nikolaychuk. He’s responsible for the key financial stability and international cooperation. He has risen at the NBU from a former yesterday’s economics graduate to a board member. Competent, restrained. We hope without toxic friends and able to withstand stress.

Because the NBU will be shaken, even if Pyshny leaves.

Like everyone else. Right now we see how the SBU is shaken. Before that the prosecutor’s office shook, even earlier — the president’s circle. All these tremors are terrible, outrageous, and destructive — a direct consequence of the actions of one man — Volodymyr Zelensky, whose thirst for power, multiplied by the incompetent personnel policy, led Ukraine into this zone of heightened seismic activity.