Senior National Bank of Ukraine Officials Suspected of Embezzling Billions

The checks follow on the reports that the National Bank was searched by the anti-corruption authority last week, which saw a number of Bank documents confiscated. According to Ukraine's anti-corruption regulator, the investigation is part of a criminal investigation into officials' abuse of office.

"We have been conducting a criminal investigation for several months now in which the management of the National Bank of Ukraine is involved; it is connected with the embezzlement of funds allocated to a number of commercial banks for refinancing," Sytnik said, speaking to the Ukrainian broadcaster on Sunday.

"We are checking on the legality of the spending on refinancing, and the involvement of the National Bank's management in this process," the official added.

Sytnik clarified that the possible wrongful spending could amount to billions of hryvnia, with "much of the money issued for refinancing transferred either to offshore funds or foreign banks." For reference, one billion hryvnia is equivalent to about $37 million US.

The official emphasized that while he could not name specific officials, "what we are saying is that such huge flows could not take place without the participation of the Bank's management." Accordingly, he noted, "virtually the entirety" of the Bank's senior officials will undergo checks.

According to the National Anti-Corruption Bureau, the period of investigation includes the years 2015 and 2016.

Following the news, unconfirmed reports surfaced in Ukrainian media that National Bank head Valeriya Gontareva has either resigned or announced her intention to resign. On Monday, Irina Lutsenko, the deputy head of the Ukrainian parliament's pro-presidential Petro Poroshenko Bloc faction told media that Gontareva had written a letter of resignation.

The National Bank's press service refuted the information. "The press service does not confirm the information about the resignation of National Bank of Ukraine head Valeria Gontareva. As you are aware, the Bank traditionally informs about changes in the composition of its board a month in advance," the press service's statement says.

Over the weekend, Gontareva said that she does not intend to spend her "whole life" working at the Bank, and that she considered her "mission in this position fully accomplished." She also indicated that she has proposed several candidates to fill the post, saying that the position should be occupied by a "professional," not a politician. Gontareva stressed that the final decision on the matter will be left up to the president.

On Monday, Ukrainian financial journalist Alexander Dubinsky wrote that in addition to the Anti-Corruption Bureau, the US Federal Bureau of Investigation had also taken an interest in Gontareva over the alleged redirection of financial assistance provided by the US and the IMF into offshore funds.