Meet the private army controlled by sacked Ukrainian billionaire Igor Kolomoisky

Billionaire banking tycoon Igor Kolomoisky was appointed governor of Dnipropetrovsk Oblast, a region in the east of the country that includes Ukraine's third-largest city, in March last year. He had one job: prevent the territory from falling into the hands of pro-Moscow rebels.

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Although he was a close ally of President Petro Poroshenko's new government in Kiev, neither had the financial nor military clout to achieve that aim. So Kolomoisky decided to build his own private army of volunteers, equipped with heavy weaponry. He paid for all of this from out of his own pocket.

Ilovaysk Ukraine fighting
An Ukrainian serviceman shoots during fighting with pro-Russian separatists in the eastern Ukrainian town of Ilovaysk August 26, 2014. REUTERS/Maks Levin

The recruits came from Ukraine and Europe. There are even a couple of Americans. Estimates suggest Kolomoisky could call on over 20,000 troops and reserves. His Dnipro Battalion, also known as Dnipro-1, includes around 2,000 heavily armed fighters. The unit is reported to have cost the banking billionaire $10 million to set up. They helped play a key role in halting the advance of the Moscow-backed rebels from their strongholds in the neighbouring Donetsk and Luhansk.

However, there are doubts about where the troops' ultimate loyalties lie — to the government in Ukraine or to their regional paymaster. Last week, armed men in masks stormed the headquarters of state-owned oil company UkrTransNafta in the Ukrainian capital Kiev, following the sacking of its director Oleksander Lazorko, a key ally of Kolomoisky.

On Tuesday, Poroshenko fired Kolomoisky and now this private could become a major problem for the Ukrainian authorities.

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Igor Kolomoisky, a prominent Ukrainian businessman and founder of the country's largest commercial bank Privat Bank, took office in Dnipropetrovsk in March 2014.

Igor Kolomoisky
gor Kolomoisky, billionaire and governor of the Dnipropetrovsk region poses for a picture at his cabinet in the regional government headquarters in Dnipropetrovsk May 24, 2014. REUTERS/Valentyn Ogirenko

Dnipropetrovsk became the front line in the battle between pro-Russian separatists in the east and Ukraine government forces.

Dnipropetrovsk Map
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He quickly set about recruiting and training volunteer "self-defence" forces that would become the Dnipro Battalion as well as a number of smaller groups that manned checkpoints.

Ukraine volunteer battalion
A civilian dressed in camouflage gear overcomes obstacles during tactical training March 1, 2015. REUTERS/Valentyn Ogirenko

The battalion was equipped with new SUVs, armoured cars, machine guns and grenade launchers, body armour and new uniforms at a reported cost of $10 million.

Dnipro battalion
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It was widely seen as being better equipped than Ukraine government forces and National Guard units.

Ukraine government troops
Ukrainian servicemen who fought in Debaltseve are seen near Artemivsk February 19, 2015. REUTERS/Gleb Garanich

In total the Dnipro Battalion was reported to number 2,000 combat ready troops with a further 20,000 reserves. In other words, it became a sizable private army.

Azov battalion training
REUTERS/Valentyn Ogirenko
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And they proved an effective force on the battlefield. In August-September 2014 the battalion took part in fighting in the rebel-held Donetsk region, but were routed by pro-Russian forces in the battle for Ilovaysk.

Ilovaysk Ukraine fighting
An Ukrainian serviceman shoots during fighting with pro-Russian separatists in the eastern Ukrainian town of Ilovaysk August 26, 2014. REUTERS/Maks Levin

Following the second Minsk ceasefire agreement reached between the two sides in February, the battalion has mostly been patrolling the border between Dnipropetrovsk and the breakaway regions.

Ukraine militia
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That is, until last week when armed men in masks stormed the offices of UkrTransNafta in Kiev following the sacking of its chairman, a key ally of Kolomoisky.

Masked troops Kiev
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The ensuing stand-off saw Kolomoisky emerge from the building to clash with journalists while his supporters decried the government's actions.

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In response, President Petro Poroshenko told troops in the Ukraine capital that no regional governor would be allowed to have a "pocket army". That move sets him on a direct collision course with his former ally.

Ukraine Poroshenko airport media address
Ukraine's President Petro Poroshenko addresses the media in Kiev. Reuters/Mykhailo Palinchak/Ukrainian Presidential Press Service

And on Tuesday evening, news came through that Poroshenko fired Kolomoisky from his position as governor of Dnipropetrovsk.

Poroshenko Kolomoisky meeting
Ukraine President Petro Poroshenko (left) and Igor Kolomoisky (right). REUTERS/Mikhail Palinchak/Ukrainian Presidential Press Service/Handout via Reuters
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The question that everyone is asking now is what will happen to the battalions funded by Kolomoisky? Can the state disband a "pocket army"?

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REUTERS/Marko Djurica
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