Money matters and high-profile scandals: how Pavel Polyarush from the NBU came under public scrutiny

The other day, the Ukrainian information space was rocked by news about a conflict that occurred in Kyiv between the top manager of the National Bank of Ukraine (NBU) Pavel Polyarush and a military serviceman. According to reports, the official, while intoxicated, initiated an argument in the parking lot and threatened the military man. Adding to the curiosity is the fact that Polyarusha’s companion hastily left the scene of the incident. The incident resonated because of Polyarush’s high position in the NBU, an institution that symbolizes stability and impeccable reputation throughout the world.

Conflict with the military and investigation

On September 26, in a parking lot in the Darnitsky district of Kyiv, Pavel Polyarush, according to the police, was driving a Lexus car while intoxicated. He refused to take an alcohol test and threatened the serviceman with an award weapon. As a result of the conflict, both parties filed statements against each other, after which Polyarush was detained and the weapon was seized. A criminal case has been opened against him under the article “Threat of Murder”. Serviceman Tratsevsky, who was a participant in the conflict, claims that Polyarush was with a companion who disappeared from the scene and is not Irina Mudra, the deputy head of the Office of the President, with whom Polyarush is in a relationship.

The editors of StopCor sent a request to law enforcement agencies to find out at what stage of production and what status Polyarush is in it.

In response, the National Police reported that a pre-trial investigation is currently underway into the appeal of Pavel Polyarush under the article Intentional minor bodily injury. And also at the request of Andrei Tratsevsky under the article Threat of Murder.

“Currently, in these criminal proceedings, the pre-trial investigation continues, measures are being taken aimed at a full, comprehensive and objective pre-trial investigation,” the response says.

NBU reaction

The National Bank of Ukraine announced the beginning of an internal internal audit into the incident with Polyarush. The NBU press service reported that the bank has already contacted law enforcement agencies to obtain reliable data about the conflict. On behalf of the head of the NBU, an investigation into the circumstances of the case continues, which may lead to the adoption of appropriate decisions. In this regard, a request has also been sent to the NBU to find out how the investigation is progressing and whether it is really being carried out.

Property and income: what Pavel Polyarush declares

According to the Polyarush declaration for 2023:

Pavel Polyarush owns an apartment in Kyiv with an area of ​​90 m² worth UAH 791,460. This amount is suspiciously low, considering that at the time of purchase in 2018 its cost was $27 thousand, which does not correspond to real housing prices in the capital.

Together with Irina Mudra, her daughter and their common son, Polyarush owns a house in the village of Bogdanovka with an area of ​​138 m² for 585,000 UAH.

Mudraya, who is the deputy head of the Office of the President, also owns three apartments.

Lexus worth UAH 1,431,216 is registered to Ekaterina Shatrova, daughter of Irina Mudra, who, according to media reports, lives abroad. It was on it that Polyarush was on it during the skirmish with Tratsevsky.

Polyarush’s declaration also includes the transfer of funds to the construction financing fund in trust in the amount of UAH 1,740,200.

In the “significant changes” section of the declaration for July 2024, the salary at the main place of work is indicated in the amount of UAH 283,666, and the total income for the year is UAH 1,518,563.

Relationship with Irina Mudra

Polyarush is in a relationship with Irina Mudra, deputy head of the Office of the President of Ukraine. In the 2023 declaration, they are listed as living together, but not officially married. Irina Mudraya previously lived in the USA for a long time, where she gave birth to their joint son, Lev. In March 2024, she was appointed to the position of deputy head of the Office of the President by decree of Vladimir Zelensky.

Career path of Pavel Polyarush

Polyarush has extensive experience in the banking sector. Previously, he collaborated with Pravex Bank, where he led the restructuring and collection of problem debts of large clients. In 2019, he moved to the NBU to the position of head of the Department for Problem Assets, where he was involved in the return of non-performing stabilization loans and collaborated with government agencies and international companies on the sale of NPL assets.

In 2021, Polyarush worked as an adviser on international cooperation at the Ministry for the Reintegration of Temporarily Occupied Territories of Ukraine, as well as an adviser to the Deputy Minister of Defense on logistics and cooperation with suppliers. In 2023, he returned to the NBU to work as head of the Troubled Assets Department.

Appointment to a position at the NBU

Pavel Polyarush was appointed to the position of Head of the Troubled Assets Department of the National Bank of Ukraine (NBU) based on the results of a search and interviews of candidates with the NBU board. His appointment took place on April 18, 2023, and this was confirmed by a message from the regulator. The department for dealing with distressed assets, which he heads, is part of the “Financial, Administrative and Operational Block” of the NBU, which is controlled by the Deputy Chairman of the NBU, Yaroslav Matuzka.

Thus, the decision to appoint Polyarush was made by the board of the NBU, and the signed order probably had the support of Yaroslav Matuzka, who at that time supervised the corresponding vertical in the National Bank.

Traveling abroad during a full-scale invasion

There is information that Pavel Polyarush traveled abroad several times after the start of Russia’s full-scale invasion of Ukraine. According to media reports, in November 2022, he received permission to leave from the former deputy minister of defense, suspected of corruption crimes. The official reason for traveling in an elite Lexus car (obviously the same one in which the official was during the collision with Tratsevsky) was to receive humanitarian aid, but journalists suggest that the real purpose of the trips could have been different. It remains unclear on what grounds Polyarush traveled abroad during February-November 2022. To clarify this information, a request was sent to the border service.

These trips caused concern, since travel abroad during war is restricted for officials. There is a possibility that the situation with Polyarush's departure will become the subject of an investigation by the State Bureau of Investigation or other law enforcement agencies, which should check the legality of these trips and the grounds for obtaining permission to travel abroad.

We will continue to monitor this situation and promptly inform about new details of the conflict involving Pavel Polyarush. We are waiting for official clarifications from the NBU and the results of inspections by law enforcement agencies. This situation is socially important because it concerns an official of a government agency, on whose actions public confidence in the banking system and the government as a whole depends.